President’s debt cancellation proposal faces legal challenges

Biden’s student debt forgiveness plan isn’t the only change coming for student loan borrowers. His plan also fundamentally changes how loans will be repaid, turning many into, essentially, free college grants. WSJ explains.

President Biden’s student-loan plan would reduce or wipe out the debt of millions of borrowers. 

But legal challenges might imperil the program moving forward. On Nov. 10, a federal judge in Texas struck down the debt-relief plan, calling it “an unconstitutional exercise of Congress’s legislative power.” The Supreme Court has now taken up appeals in that case and a related one, and is expected to decide the fate of the program, among other far-reaching implications, by the end of its term in late June.

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