President Joe Biden's student loan forgiveness plan, which the conservative majority has long criticized, will be scrutinized by the Supreme Court on Tuesday.
There is profound skepticism that the program will ever go into force. However, it has stalled since October, when the 8th US Circuit Court of Appeals ordered a temporary stay, allowing qualifying debtors to cancel up to $20,000 in debt, according to NBC News.
Two parties with outstanding student loan debt, Myra Brown and Alexander Taylor, and six states, including Missouri, have petitioned the court to hear their cases.
Advocates of the student loan forgiveness plan held a rally outside the US Supreme Court before the arguments were presented. One demonstrator carried a poster reading, "Student loan debt cancellation is not illegal!" USA Today reported.
On Tuesday, a group of Republican-controlled states will move the Supreme Court to halt the Joe Biden administration's plan to cancel federal student loans. The states argue that the federal government overstepped its bounds when the president established a plan to forgive up to $20,000 in federal student loan debt.
How Does The Student Loan Forgiveness Plan Work?
Individuals with annual incomes of less than $125,000 or families with annual revenues of less than $250,000 would have their $10,000 in federal student loan debt canceled under the debt forgiveness proposal revealed in August. As per an AP News report, Pell Grant applicants, who are often poorer, would get $10,000 in debt forgiveness.
For students, this means that their student loans had to have been issued before July 1. The Biden administration asserts that 20 million borrowers would have their debt wiped out under the proposal and that 43 million borrowers will get some debt forgiveness.
Around 26 million Americans have sought debt relief, with 16 million having their applications granted, costing close to $400 billion over the next three decades, per the Congressional Budget Office.
Related Article: Lindsay Clancy Case Update
