The Biden administration wants to forgive up to $20,000 in student debt per borrower in order to wipe out $400 billion in student debt.
"student loan forgiveness"
Six Republican-led states — Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina — and two individuals sued to stop the plan.
"student loan forgiveness"
The program, announced in August, fulfills a campaign promise made by President Biden and would provide relief to more than 40 million borrowers.
In a court brief, applicants ask the Supreme Court to strike down the programme on the grounds that the Biden administration improperly used the COVID-19 outbreak to assert "breathtaking and transformational power.
Due to a lack of standing, the case was previously dismissed by a federal district court in St. Louis. The debt relief scheme, however, was halted by a federal appeals court.
President Biden's plan would forgive up to $10,000 in federal student debt for people who make less than $125,000 per year. Additionally, those who receive Pell Grants (a type of financial aid) would be eligible for an additional $10,000.
According to the White House, over 26.2 million people applied in the less than four weeks that the application was available, and over 16 million of those applications were approved by the Department of Education.