Biden's Student-Loan Relief Plan Gets Expanded Review from Supreme Court

The U.S. Supreme Court expanded a planned showdown over President Biden's student-loan relief plan, saying it will hear arguments from two borrowers who contend they are being unfairly excluded from the full scope of the program.

The court was already set to hear arguments early next year from six Republican-led states that say the president lacked authority to issue the sweeping plan. The new challenge also contends the Education Department took an improper procedural shortcut by not letting the public comment on the plan before finalizing it.

The plan, which could cost an estimated $400 billion, would forgive as much as $20,000 in federal loans for certain borrowers making less than $125,000 per year or $250,000 for households. About 26 million people requested forgiveness before the Education Department stopped accepting applications, and the administration says more than 40 million Americans would be eligible. (American Banker, Dec. 12)