The Education Department plans to defend a new student debt relief policy before the Supreme Court after an appeals court temporarily blocked the regulations, citing statutory shortcomings. The policy aims to provide relief for students misled by colleges and streamline the application process for debt forgiveness. Despite challenges, the Biden administration believes it has the statutory authority under the Higher Education Act to grant relief, both before default and on a group basis, which could greatly impact affected students.
The government continues to regard the issue as one of exceptional and lasting importance. Indeed, if this court were to reject the court of appeals' interpretation of the statute, the department would exercise its statutory authority to promulgate a new borrower-defense regulation.
Under the borrower defense to repayment program, borrowers can apply for debt relief if their college or university misled them or violated certain state laws.
The Supreme Court said in January that it would review an appeals court decision that put the policy on hold after finding the regulations had numerous statutory and regulatory shortcomings.
The new regulations simplified the application process for affected students and allowed the department to automatically discharge student loans in some cases.
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