Supreme Court hears arguments about student loan debt relief
PHILADELPHIA (CBS) -- The U.S. Supreme Court on Tuesday will consider whether President Joe Biden has the authority to wipe away billions of dollars in student loan debt for millions of Americans.
The Supreme Court heard arguments on two challenges to the Biden administration's federal student loan debt relief plan.
"An entire generation is now saddled with unsustainable debt," Biden said on Aug. 25, 2022.
Biden announced the program in August to make good on a campaign promise.
It offers $20,000 in relief for Pell Grant recipients and $10,000 dollars for other federal student loan borrowers who make less than $125,000 a year.
According to the White House, more than 26 million Americans submitted applications and 16 million of them were approved before lower courts paused the program.
The Congressional Budget Office says the plan, which has been widely criticized by Republicans, would cost almost half a trillion dollars.
"I think the legal justification for it is highly questionable," Texas Republican Sen. Ted Cruz said.
On Tuesday morning, the nine justices will hear a challenge from six Republican states who say the president's plan is a "breathtaking and transformative exercise of power" and another from two borrowers -- one who doesn't qualify for the program and the other who is only eligible for partial relief.
Federal student debt repayments have been on pause while legal challenges are underway. Federal student loan payments will resume 60 days after a ruling or at the end of August, whichever comes first, the Biden administration previously said.
"The justices will be considering whether both the states and the individuals even have the legal authority to sue to challenge the plans," Mark Sherman with the Associated Press said, "as well as whether the Biden administration has its legal authority to forgive student loans."
"We're confident in our legal authority," White House Press Secretary Karine Jean-Pierre said. "We're going to see what the Supreme Court decides."
A decision is expected by early summer.