Biden's scheme to reduce student debt has been challenged in court



The student loan debt reduction scheme of the Biden administration, which is scheduled to go into force this weekend, was requested to be stopped by the Supreme Court on Wednesday.

The request was made to Justice Amy Coney Barrett, who is in charge of receiving requests for emergency applications from the 7th Circuit U.S. Court of Appeals, by the Brown County Taxpayers Association in Wisconsin.

A request for comment on the group's request was not immediately met by the White House.

Earlier this month, a federal court in Wisconsin rejected the taxpayers association's complaint against the program, finding that the organization lacked the authority to halt it.

After that, the organization appealed that decision to the 7th Circuit appeals court.

In the letter sent to Barrett on Wednesday, it is requested that President Joe Biden's proposal to forgive up to $20,000 in student loan debt for millions of borrowers be put on hold while the appeal is still underway.

On Friday, the U.S. Department of Education launched a beta test of its application for student loan forgiveness.

Over that weekend, more than 8 million individuals filed pleas for assistance.

On Monday, the application made its public debut. As early as this Sunday, the Biden administration may begin reviewing borrower petitions for student loan forgiveness.

Legal obstacles to the forgiveness of student loans

The president's proposal has been the target of increasing numbers of legal challenges.

Biden's proposal is being resisted by six Republican-led states: Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina. They claim that the president lacks the authority to provide federal debt relief without Congress. Additionally, they assert that the measure will hurt private firms that handle some federal student loans by decreasing their revenue.

Finding a plaintiff who can demonstrate they have been damaged by the policy is the key challenge for anyone wanting to stop the president's action. The establishment of what courts refer to as "standing" requires such an injury, according to Harvard law professor Laurence Tribe.

Tribe stated that he is not sure that any of the recently filed cases have been successful in achieving that.

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