President Biden’s newest student loan forgiveness plan has driven headfirst into a red cement wall. Kansas, alongside 10 other states, are aspiring to challenge the proposal that would dissolve more than $150 billion.
Not the First Time
The case of Kansas v. Biden is a second attempt to strike down Biden’s student debt relief efforts. Its predecessor, Biden v. Nebraska, was overruled by the Supreme Court, neutering the administration’s forgiveness proposal that would’ve reduced federal student debt by $430 billion.
A Review of Forgiveness
Biden’s legal crutch for the case rested heavily on the Higher Education Act of 1965 (HEA) through a generous interpretation of the statutes cited in order to establish debt relief for federal loans.
Skeptical at Best
It could be argued that HEA Section 455 permits executive power for repayment plans, but critics staunchly agree that such power would be stepping outside the checks-and-balances system in place.
Ripped From the History Books
Primary concerns center around the interpretation of the law, demanding specificity from Congressional spearheads. This counterpoint was the exact rebuttal used in the previous Biden v. Nebraska case.
More Than Meets the Eye
While the current proposal aims to resolve $156 billion in debt, the actual amount might be higher due to factors involving the strike down of the plan’s predecessor, as well as changes in eligibility.
HEA Revival
Patterns from the previous Biden v. Nebraska have been traced through the current lawsuit, with concerned parties claiming that state-funded agencies servicing federal student loans could potentially go under in the absence of loans.
MOHELA
One such agency threatened with extinction is MOHELA, Louisiana’s primary student loan organization. If the proposal passes, MOHELA employees would endure lower wages.
Arguments All Over the Place
Plaintiff states in the court case have produced an array of reasons to deny the proposal. Some, like Louisiana, argue it will decrease public servants’ income. Other states are employing differing legal strategies, to varying strengths.
Out of Pocket?
Cries to stop the loan forgiveness plan in court mainly originate from concerned Republicans. Many are seeking to prevent an overreach of executive power and reinforce congressional authority regarding fiscal matters.
Who’s In Charge?
Kris Kobach, the Kansas Attorney General, is a key player in the case. However, his controversial reputation raises doubts about the effectiveness of his involvement.
Digress to Congress
Regardless of Kobach’s history, the lawsuit seems to hold legitimate legal questions surrounding the extension of Biden’s influence.
The middle ground would be having the plan backed by congressional approval.
A Struggle for Power
The overarching takeaway from the lawsuit is over how to balance presidential power, fiscal responsibility, and the accurate application of statutory provisions regarding federal student loan forgiveness.
A Clarifying Case
As Biden v. Kansas continues to unfold, scrutiny of the suing states’ counterpoints will offer insight into future interpretations of student loan forgiveness, specifically the relationship between borrowers and federal relief.
Asking the Experts
Both legal strategists and political thinkers note how monumental the court’s ruling could be. Conservatives hope it will limit orders from the Oval Office, while progressives are looking for a looser interpretation to resolve the hefty financial burden.
Lose the Forest for the Trees
While the lawsuit is quite politically charged, the legal and constitutional undertones take precedence. Cases like this remodel executive authority, which could have lasting effects that would be difficult to reverse.
Thinking Long Term
By changing how the executive branch can ignite immediate action, balances for the other two branches could be skewed.
This leaning could lead to future presidents being at the mercy of politically controlled courts and an overbearing Congress.
Loans Still Unforgiven
Regardless of the turnout for this case, many individuals have spoken about their desire for student loan forgiveness. It is important for the court to consider both the political tiding and the public’s desires.
21 States Where Squatters Can Legally Claim Your Property
Discover how squatters’ rights, or adverse possession, are more than just legal jargon—they’re stories of unexpected twists in the world of real estate. From sunny California to the historical landscapes of Pennsylvania, here’s how these laws could turn the tables on homeowners and squatters alike. 21 States Where Squatters Can Legally Claim Your Property
14 Things That Are Banned in the U.S. but Totally Fine Elsewhere
Ever feel like America’s rulebook was written by someone with a dartboard? Across the pond or down under, things get even wackier. Let’s take a walk on the wild side of global “Do’s” that are definite “Don’ts” in the Land of the Free. 14 Things That Are Banned in the U.S. but Totally Fine Elsewhere
25 American States Nobody Wants to Visit Anymore
Across the United States, some states capture the hearts and itineraries of many, while others remain quietly on the sidelines, overshadowed or misunderstood. These 25 states, facing what you might call a popularity crisis, are brimming with hidden wonders, cultural riches, and natural beauty, awaiting those willing to look beyond the usual tourist trails. 25 American States Nobody Wants to Visit Anymore
20 Foods That Are Cheaper to Eat Out Than Making at Home
In a world where convenience often wins, certain culinary delights come with a lower price tag when enjoyed at a restaurant rather than crafted in your own kitchen. Here are twenty foods that might save you both time and money when indulged in at your favorite eatery. 20 Foods That Are Cheaper to Eat out Than Making at Home
17 Things You’re Paying For, but You Don’t Have To
In the land of the free, there’s a price tag on everything, but savvy Americans know better than to open their wallets for just anything. Here are 17 expenses you’ve been shelling out for without realizing there’s a cheaper or even free alternative. 17 Things You’re Paying For, but You Don’t Have To
The post 11 States Set to Contest Biden’s $150 Billion Student Loan Forgiveness Plan first appeared on From Frugal to Free.
Featured Image Credit: Shutterstock / Monthira.
The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
