The US Supreme Court kept President Joe Biden's student-loan relief plan on hold while agreeing to hear arguments that could lead to a final decision on presidential power by June.
The justices did not lift a federal appeals court decision that is blocking the program. They granted the administration s request for a fast-track review of a challenge to the plan by six Republican-led states. The court said it will hear arguments in late February or early March.
Biden's plan could cost $400 billion. For households with less than $125,000 per year or $250,000, the program would forgive as much as $20,000 in federal loans. About 26 million people had requested forgiveness before the Education Department stopped accepting applications.
The Nebraska-led states say that Congress didn't authorize the president to unilaterally take a step with such sweeping economic and political implications. Biden believes that he has authority under a law that lets the Education Department provide debt relief during national emergencies.
Biden is facing a lot of challenges in the program. The biggest issue for opponents is the existence of standing to sue, showing that they are directly harmed by the policy. The 8th US Circuit Court of Appeals said the states had standing because of the impact on a Missouri loan servicer that has financial ties to that state s treasury.
Missouri, Arkansas, Iowa, Kansas, and South Carolina are facing the challenge alongside Nebraska.
The debt-relief plan was on hold since October 21, when the 8th Circuit issued an emergency order blocking the program. The Supreme Court action came a day after a federal appeals court refused to lift a separate order blocking the program.
Debt costs are not a problem in the world.