SCOTUS Divides on Student Loans: Biden's Plan Blocked

President Biden has announced a new effort to cancel college loans using the Higher Education Act of 1965, after the Supreme Court struck down his previous student debt forgiveness program. The law grants the secretary of education the authority to compromise, waive, or release any right, title, claim, lien, or demand. While some proponents of student debt relief had previously suggested using this law, the Biden administration initially used a different law during the Covid-19 pandemic. The Supreme Court ruled that the administration had stretched that law too far. If Biden's new plan faces a similar lawsuit, it would likely come before the same Supreme Court, raising questions about the wording differences between the statutes. Biden believes the new approach is legally sound and has directed his team to move quickly, although it may take longer than his original plan.