House Republicans failed Wednesday in a 221 to 206 vote to overturn President Joe Biden’s veto of legislation they put forth to cancel his student debt forgiveness plan for Americans.
Congress passed the Republican-led resolution in early June.
Biden’s plan seeks to forgive up to $10,000 in federal student loan debt for borrowers who earn less than $125,000 per year. Pell Grant recipients are eligible for an additional $10,000 of forgiveness. More than 16 million Americans were approved for debt relief in the fall before two lawsuits put the plan on pause.
Wednesday’s vote means Biden does not have to worry about Republicans using the Congressional Review Act to thwart his plan, according to Newsweek.
Now student loan borrowers await a decision from the Supreme Court about the lawsuits, which is expected by July 1, when the court’s summer session ends.
“In spite of our opponents’ best efforts to sabotage our work to support student borrowers, we are fully committed to helping borrowers successfully navigate the return to repayment with the pandemic now behind us,” a U.S. department of Education spokesperson told Newsweek.
CNBC reports that legal experts say it makes sense the Supreme Court’s ruling is taking time.
“The more complicated, difficult cases tend to take longer,” Northeastern University law professor Dan Urman said.
And the cases before the Supreme Court are about an issue that has no precedent: a United States president sweeping $400 billion of student loan debt away. The policy would be among the most expensive actions taken by a president.
Therefore, Biden’s plan raises several difficult issues, such as whether he has the power to forgive student debt without congressional authorization. Officials in his administration argue he is acting within the law under the Heroes Act of 2003 which grants the U.S. secretary of education authority to make changes to the federal student loan system during national emergencies. The COVID-19 pandemic put the U.S. in a national emergency.
The Supreme Court must also decide if the plaintiffs in one case would be harmed by Biden’s policy. A conservative advocacy organization, Job Creators Network, brought this lawsuit on behalf of two individuals who would be partially or fully excluded from forgiveness in Biden’s plan.
In the other case, Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina argue that a reduction in loan business for companies in their states servicing federal student loans would hurt their bottom line.
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Rebecca Barnabi
