Do the parties challenging the Biden administration’s student-loan forgiveness plan have the right to file a lawsuit? Does the law give the administration the power to cancel the debt?
Supporters of the Biden administration’s plan to cancel up to $20,000 in student debt created a festive mood outside of the U.S. Supreme Court on Tuesday, as a five-piece band serenaded hundreds of protestors, some donning sweatshirts with their debt loads emblazoned on them, and others holding signs that said “cancel student debt now.”
The justices seemed skeptical that Brown and Taylor had standing, or the right to sue, over the policy. In order for a plaintiff to have standing they need to be directly injured by the policy and the court needs to be able to redress the harm. Justice Clarence Thomas referred to a law that generally requires government agencies to seek public comment on actions, asking the attorney representing the borrowers whether “this court has ever held that the notice and comment provisions of the Administrative Procedures Act . . . are enough for standing in a case like this?”
The government has argued that MOHELA is a separate legal entity from the state that can sue and be sued in its own right. Therefore, the government says, Missouri and the other states can’t claim MOHELA’s injury as standing to bring their own suit challenging the policy. Justice Kentaji Brown Jackson expressed skepticism regarding another one of the states’ arguments that if the debt-relief plan were to move forward MOHELA wouldn’t be able to contribute to a Missouri state fund that it hasn’t paid into for years. “When the most minor state interest, a dormant fund” is enough to constitute standing, Jackson said “I guess I’m concerned,” that the court could wind up allowing parties to interfere with the operation of the federal government.
The Biden administration has said it shouldn’t apply to this case because it’s about providing a government benefit, not regulating industry. In addition, they say the major questions doctrine doesn’t apply because dealing with student debt is squarely within the Department of Education’s purview, which oversees the federal student loan program.
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