Student-Debt Cancellation in Question Due to End of Pandemic Emergency
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Here's your Money Briefing for Monday, February 13th. I'm J.R. Whalen for The Wall Street Journal. Later this month, the Supreme Court will hear arguments regarding President Biden's plan to cancel up to $20,000 in federal student loan debt for millions of borrowers, many of whom haven't had to make payments since the start of the pandemic.
When will the Supreme Court hear arguments on Biden’s $20,000 student-debt cancellation plan?
But the administration's plan could face a significant hurdle, and it has to do with the end of the COVID-19 National Emergency Declaration.
It's about addressing the harms that were incurred during the pandemic. So just because it's sunny after a hurricane doesn't mean that your house didn't lose its roof.
Wall Street Journal reporter Gabe Rubin has been following litigation surrounding student debt relief, and he'll join us to discuss the case. After the break.
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Some student loan borrowers could see thousands of dollars in debt canceled under a Biden administration plan if the Supreme Court rules in favor of the White House. But the easing pandemic and the strong economy have brought the fate of that plan into question. Wall Street Journal reporter Gabe Rubin has been tracking the case that's headed to the Supreme Court, and he joins us to discuss. Hey, Gabe, thank you very much for being with us.
It's a pleasure to be here.
So, Gabe, catch us up here.
How could ending the COVID-19 national emergency affect the legal basis for loan forgiveness?
What's the timeline for arguments regarding the forgiveness plan to be heard by the Supreme Court?
So the court is going to hear arguments on February 28th, and they are hearing challenges to the Biden administration's forgiveness plan that would cancel up to $20,000 in student debt for some borrowers. And the decision is likely to come sometime this summer when the court wraps up its term, likely in late June.
Now, we heard from the White House recently that the public health emergency declaration for COVID-19 will end in May. Why are some people saying that that could play a role in the loan forgiveness arguments?
Opponents of the plan, which includes essentially every House Republican in the new majority, they have taken aim at what they see as a disconnect between the administration's rosy depictions of this strong economy and the need for more pandemic-related aid when other programs have been discontinued. The administration counters that the emergency declaration really has no bearing on whether the program moves forward because it's about addressing the harms that were incurred during the pandemic. So just because it's sunny after a hurricane doesn't mean that your house didn't lose its roof. The critics of this plan say that the White House was simply looking for a legal justification to push through mass debt cancellation and that the pandemic national emergency serves as a helpful tool but isn't the real reason why they're doing it.
And there's an executive action that goes back to the 9-11 terror attacks that's going to be a part of the case before the court also.
What is the HEROES Act and how is it used to justify broad student-debt cancellation?
How does that fit in here?
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Chapters
5 chapters
1
What is the main topic discussed in this episode?
0:00–0:52
2
When will the Supreme Court hear arguments on Biden’s $20,000 student-debt cancellation plan?
0:52–2:15
3
How could ending the COVID-19 national emergency affect the legal basis for loan forgiveness?
2:15–3:44
4
What is the HEROES Act and how is it used to justify broad student-debt cancellation?
3:44–6:03
5
Why do critics argue the administration’s pandemic rationale for forgiveness is weak?
6:03–6:37
Speakers
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