Biden admin says debt cancellation plan 'comfortably' in its authority

Jan. 5 (UPI) -- The Biden administration filed its opening brief to the U.S. Supreme Court defending its student debt cancellation program, saying it is "comfortably" within its authority to implement it to help those saddled with decades of student loan payments.

In the brief, filed late Wednesday, the administration argues that it has the authority to cancel the debt under the 2003 HEROES Act, which gives it the power to waive laws that usually govern student loans during national emergencies.

"The lower courts' orders have erroneously deprived the Secretary [of Education Miguel Cardona] of his statutory authority to provide targeted student-loan debt relief to borrowers affected by national emergencies, leaving millions of economically vulnerable borrowers in limbo," the Justice Department brief said.

The Supreme Court is set to hear oral arguments in February in two cases led by Republican-controlled states challenging the program, claiming the move in turn leaves taxpayers on the hook for the money incurred.

The Justice Department while it believes it is well within its right, the cases should be dismissed because the states and two Texas loan borrowers lack standing to bring the case.

Republicans and conservative groups said the loan relief program is actually an abuse of the law, harming states by reducing tax revenue produced by the loans and circumvents required Congressional approval.

"We remain confident in our legal authority to adopt this program that will ensure the financial harms caused by the pandemic don't drive borrowers into delinquency and default," Cardona said in a Twitter post late Wednesday.

"We are unapologetically committed to helping borrowers recover from the pandemic and providing working families with the breathing room they need to prepare for student loan payments to resume."