The Justice Department defended the Biden administration’s plan to cancel millions in dollars of federal student loan debt to the Supreme Court, saying it falls “comfortably” wit…
to cancel millions of dollars in federal student loan debt to the Supreme Court this week, saying the initiative falls “comfortably” within the law.
“The plan falls squarely within the plain text of the HEROES Act; indeed, a central purpose of the statute is to authorize the Secretary to grant student-loan-related relief to at-risk borrowers because of a national emergency—precisely what the Secretary did here,” it continued. The brief noted that former President Donald Trump declared a national emergency in March 2020 because of the pandemic and that then-Education Secretary Betsy DeVos invoked the act that same month when she suspended student loan payments.
The Justice Department added that Cardona looked at the potential financial problems caused by the pandemic, from overall economic damage, layoffs, inflation and rising delinquency rates in making his decision.
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