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Supreme Court to hear case about Biden's student loan forgiveness plan

Student Loan Forgiveness
Posted at 1:13 PM, Dec 01, 2022

The Supreme Court has agreed to hear a case to determine the legality of President Joe Biden's student debt cancelation plan.

The Biden administration petitioned the court after lower courts blocked the plan.

The Supreme Court will hear the case in February. It will not lift a lower court's injunction, meaning loan forgiveness will not happen prior to the hearing.

The petition with the Supreme Court concerns a lawsuit filed by six Republican-led states.

It seeks to overturn an injunction by a federal appeals court in St. Louis

Biden's plan would forgive $10,000 in federal student debt for those with incomes of less than $125,000, or households earning less than $250,000.

People who received a Pell Grant would be eligible for $20,000 in relief.

Last month, Biden extended the federal government's student loan repayment pause, which was first implemented at the start of the pandemic.

It was due to expire at the end of the year, but it will now expire no later than June 30, 2023.

Biden said that would give the case enough time to work its way through the courts.