WASHINGTON, D.C., USA — The U.S. Supreme Court started hearing two cases Tuesday concerning President Biden's student debt forgiveness plan.
It would allow millions of Americans with student loans to get up to $10,000 or $20,000 in debt canceled.
Pell Grant recipients would be eligible for an additional $10,000 in debt relief. This would be for people making less than $125,000 a year or households earning less than $250,000.
Two court cases, one filed by six states and the other by two students, made their way to the U.S. Supreme Court. The justices are deciding whether they have the right to sue and whether the Biden administration can use the HEROES Act to erase student debt.
The HEROES Act was established after 9/11 and allows the U.S. Department of Education to change the terms of federal student loans if there is a national emergency.
The states argue that federal agencies cannot put sweeping new policies in place that have a big economic impact without approval from Congress.
The conservative majority commented on that on Tuesday.
"We take very seriously the idea of separation of powers," said Chief Justice John Roberts.
And also questioned whether this would be fair.
"For example, people who've paid their loans," said Justice Neil Gorsuch.
The liberal minority questioned whether the states have the right to sue.
"The people who are suing have to show they have been injured and the six states really have not been injured here," said former U.S. Attorney Harry Litman.
The federal government put student loan repayments on pause at the start of the pandemic. That brought relief to hundreds of thousands of Western New Yorkers.
The U.S. Department of Education just released new information breaking down the number of people within Congressional districts who stand to benefit from the President's plan.
In the 26th District, an estimated 117,200 borrowers are eligible for student debt relief. 76,200 applied or were deemed automatically eligible and 49,100 of the fully-approved applications were already sent to loan servicers for discharge.
And, in the 23rd District, an estimated 102,400 borrowers are eligible for student debt relief. 67,200 applied or were deemed automatically eligible, and 42-thousand of the fully-approved applications were already sent to loan servicers for discharge.
Even though we don't know how long this will take to play out, we do have an idea from the U.S. Department of Education about when people can expect to have to start repaying their student loans. It won't be before the Supreme Court makes a decision unless that doesn't happen by June 30, 2023.
If the debt relief program isn't implemented by then, and the case isn't resolved, you'd have to start paying again in 60 days.
But, NBC News reports that the Supreme Court is expected to rule by the end of June.