Supreme Court Could Weigh In On Dispute Between Federal and State Governments
Introduction
The legal battle over student loan debt relief has taken another turn, with the possibility of the Supreme Court getting involved. The Saving for a Valuable Education (SAVE) repayment plan has been at the center of two ongoing court cases, causing uncertainty for borrowers. The Biden administration has now asked the Supreme Court to lift a lower court’s ruling that blocked the SAVE plan. This article explores the players involved, how the cases have progressed so far, and what the future holds for borrowers.
Who Are the Players?
The legal challenges to the SAVE plan were initiated by a group of Republican-led states, including Missouri and Kansas. These states argue that only Congress should have the authority to authorize the expenditure of funds for the plan, as it would have a significant impact on the federal budget. On the other hand, the Department of Education and Secretary Miguel Cardona believe that student loan debt is a crisis that needs to be addressed urgently.
How Did We Get Here?
The court cases have primarily focused on procedural matters rather than the merits of the SAVE plan itself. The concept of Standing, which requires plaintiffs to prove they have been harmed and the court can provide a remedy, has been crucial in these cases. In the Kansas case, the judge ruled that a majority of the states in the coalition did not have sufficient reason to bring a case against the SAVE Act. Additionally, there have been disagreements among judges regarding the implementation of the plan during the litigation process, causing confusion for borrowers.
What’s Ahead in the Cases?
While the appeals currently only address the implementation of the plan during the litigation, there is a possibility that the Supreme Court could take on the case in its entirety. The Texas Solicitor General, as part of the Kansas case, has requested that the Supreme Court not only hear the case but also skip oral arguments. It is worth noting that the Supreme Court previously struck down a broad student loan forgiveness plan, which shares similarities with the SAVE plan. If the Supreme Court decides not to take up the case, it will continue to be litigated in federal courts, focusing on whether the Biden administration has the authority to implement the SAVE Act.
Conclusion
The legal battle surrounding the SAVE plan has left borrowers in a state of uncertainty. With the possibility of the Supreme Court getting involved, the resolution of these cases could have far-reaching implications for student loan debt relief. In the meantime, experts advise borrowers to avoid making drastic decisions and wait for further developments. It remains to be seen how long this legal drama will continue, but one thing is clear: the future of the SAVE plan hangs in the balance.
Read the original article on Investopedia.
