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Ray Bogan

Political Correspondent

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Politics

22 attorneys general file Supreme Court brief supporting student loan relief

Jan 12, 2023

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Ray Bogan

Political Correspondent

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21 states and the District of Columbia filed an amicus brief with the Supreme Court, expressing their support for President Biden’s student loan forgiveness plan. The attorneys general argued the Department of Education is properly exercising its authority under the Heroes Act to provide financial relief to those impacted by the COVID-19 pandemic. 

“This one-time program targets borrowers most impacted by the pandemic – in keeping with federal authority to make changes to student loan payments in response to national emergencies. I applaud the Supreme Court for its swift consideration of this matter, and I urge it to allow the Department of Education to begin providing this sorely needed measure of relief,” California Attorney General Rob Bonta said in a statement. 

The attorneys general wrote this will prevent financial hardship and defaults once payments resume. The state’s amicus brief was one of many filed during a coordinated effort to say President Biden’s plan to forgive 10 to 20 thousand dollars in debt for 40 million Americans is legal. 

“Student loan borrowers from all walks of life suffered profound financial harms during the pandemic and their continued recovery and successful repayment hinges on the Biden administration’s student debt relief plan,” Education Secretary Miguel Cardona said in a statement about the briefs. 

The lawyers for Myra Brown, who is challenging the forgiveness plan, argue the Heroes Act was designed to give relief to soldiers in Iraq and Afghanistan while they were deployed, not forgive $500 billion in loans for tens of millions of borrowers. Brown doesn’t qualify for forgiveness because her loans are held by a private company, not the federal government.

Supreme Court justices will hear oral arguments Feb. 28 and their decision will be released by the summer. Regardless, regular monthly payments will restart by the end of August at the latest, but it could be sooner depending on the court’s actions.

On Tuesday, the Biden administration released a proposal to overhaul the repayment system. That includes capping monthly payments at 5% of the borrowers income and ending the accumulation of unpaid interest for those who are on a regular payment schedule.

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21 states plus the District of Columbia filed an amicus brief with the Supreme Court, expressing their support for President Biden’s student loan forgiveness plan. The Attorneys General argued the Department of Education is properly exercising its authority under the Heroes act to provide financial relief to those impacted by the covid-19 pandemic. They said this will prevent financial hardship and defaults once payments resume.  

The state’s amicus brief was one of many filed during a coordinated effort to say President Biden’s plan to forgive 10 to 20 thousand dollars in debt for 40 million Americans is legal. 

The lawyers for Myra Brown, who is challenging the forgiveness plan, argue the Heroes act was designed to give relief to soldiers in Iraq and Afghanistan while they were deployed, not forgive 500 billion in loans for tens of millions of borrowers. 

Brown doesn’t qualify for forgiveness because her loans are held by a private company, not the federal government.

Supreme Court Justices will hear oral arguments February 28th and their decision will be released by the summer. Regardless, regular monthly payments will restart by the end of August at the latest, but it could be sooner depending on the court’s actions. You can count on straight Arrow news for unbiased, straight facts about student loan updates. Straight from DC, I’m Ray Bogan.