Biden v. Nebraska
Issues
Can six states challenge the Biden administration’s student debt relief plan by arguing that the plan exceeds the Secretary of Education’s authority or is arbitrary and capricious?
This case asks the Supreme Court to consider the legality of the Biden administration's student debt relief plan, which six states have challenged, claiming that the plan exceeds the Secretary of Education’s authority. The Biden administration argues that the six states do not have standing to bring the lawsuit because they do not suffer injuries caused by the student debt relief plan. Further, the Biden administration contends that even if the six states do have standing, the student debt relief plan falls within the statutory power of the Secretary of Education. The six states counter that they can establish standing because the student debt relief plan could cause financial loss to their state-authorized loan entity or reduce state tax revenue. The six states further contend that the student debt relief plan exceeds the statutory authority of the Secretary of Education because the plan is neither necessary nor proportionate to ameliorate the conditions caused by the COVID-19 pandemic. The outcome of this case will have far-reaching implications for student loan borrowers, state budgets, and the overall economy.
Questions as Framed for the Court by the Parties
(1) Whether six states have Article III standing to challenge the Department of Education's student-debt relief plan; and (2) whether the plan exceeds the secretary of education's statutory authority or is arbitrary and capricious.
Title IV of the Higher Education Act of 1965 (“Higher Education Act”) grants the Secretary of Education (“Secretary”) the authority to award federal financial aid to eligible students for their postsecondary education. 20 U.S.C.
Additional Resources
- Eric Beech and Steve Gorman, U.S. Appeals Court Temporarily Blocks Biden's Student Loan Forgiveness Plan, Reuters (Oct. 22, 2022).
- Amy Howe, In Pair of Challenges to Student-Debt Relief, Big Questions about Agency Authority and the Right to Sue, SCOTUSblog (Feb. 13, 2023).
- Greg Stohr, Supreme Court Keeps Biden’s Student-Debt Plan on Hold, Will Hear Appeal, Bloomberg (Dec. 1, 2022).
- Debra Cassens Weiss, Supreme Court will consider challenge to Biden's student-debt relief program, puts case on fast track, ABA Journal (Dec. 1, 2022).