Federal Appeals Court Temporarily Blocks the Biden-Harris Administration’s Student Debt Relief Plan: Secretary Cardona Responds That the Program 'Is Moving Full Speed Ahead'

Oct 24, 2022

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By: Francine E. Friedman, Kerry Mackenzie (Public Policy Specialist)

The states argue in their lawsuit that the Biden-Harris administration has overstepped its authority in taking sweeping financial action without the authorization of Congress. They requested a stay of the program based on the economic harms, including lost tax revenue and damages to state-based loan companies that manage some federal loans, that they contend it would cause their states. The Biden-Harris administration asserts that the Student Debt Relief Plan can be implemented under the Higher Education Relief Opportunities for Students Act (HERO Act, H.R. 1412), which allows the Secretary of Education to waive federal student loan repayments during national emergencies. The administration, backed by the Department of Justice, contends that COVID-19 is a time of national emergency and therefore they may take this action.

Although the Biden-Harris administration had previously announced that it would begin clearing student debt as early as October 23, the stay will force the administration to adjust its timeline. Experts now say that the earliest the administration is expected to begin clearing debt is mid-November. Despite the stay, Department of Education Secretary Miguel Cardona maintained in a USA Today Op-Ed that the administration “is moving full speed ahead” to deliver student loan debt relief. He also touted that 22 million people have already submitted their application to the program.

For more information on the Student Debt Relief Plan, please visit the administration’s landing page or reference Akin Gump’s previous alerts on the subject.

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