There's another legal route Biden can use to cancel student debt, and the Supreme Court's latest move shows the justices could be open to it
that they were not given due process to respond to the claims, and they wanted the Supreme Court to place a stay on the relief as the appeals process plays out. , allowing the relief to move forward. That means that at least five of the justices disagreed with the schools' claim that Biden cannot cancel student debt under the Higher Education Act.
But the schools in the borrower-defense appeal targeted the Higher Education Act, which allows the Education secretary to approve borrower-defense claims under the provision in the law that provides the secretary the authority to"enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand" related to student loans.
The three schools argued that the Education Department could not use the Higher Education Act to authorize the student-debt relief in the borrower-defense settlement. They said that such relief cannot be implemented without congressional approval, and that the outcome of Biden's broad debt relief would have a"significant impact" on their lawsuit.
Their schools' logic mirrors arguments made in the two lawsuits — Department of Education v. Brown and Biden v. Nebraska — aiming to block the broader debt relief. In those cases,whether the HEROES Act gives Biden the authority to broadly forgive student debt, similar to the schools' question of whether the HEA gives him the authority to broadly settle borrower-defense claims.
This week's move by the court to deny the schools' appeal could signal that the justices would look favorably on Biden's authority under the HEA. That could mean that the Supreme Court would accept broader relief using that law, even if they strike down the current plan based on the HEROES Act.
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