An update on Nebraska V Biden with Attorney General Mike Hilgers

NORTH PLATTE, Neb. (KNOP) - Last year President Biden announced a plan to forgive all or a portion of student loan debt for 43 million eligible borrowers.

Whether or not President Biden has the authority to do so was brought before the Supreme Court last week. An estimated 370,000 Nebraskans stand to receive $10,000 to $20,000 in student loan forgiveness if the Supreme Court agrees the president has the authority to grant that relief.

“This is one of the most important separations of power cases I think in my lifetime. This really goes to the core question of do we live in a system of Government in which Congress has the ability to legislate and appropriate. Or, do we live in a system of Government in which the President can appropriate according to his whim?” Nebraska Attorney General Mike Hilgers said.

Adding, “Congress has not approved a half trillion dollars of loan forgiveness. The Biden Administration did it anyway, and Nebraska was one of the few states to say hold up, the Constitution says that Congress has the power to legislate and so they didn’t legislate. Therefore it’s void. And that’s the case the Supreme Court heard last week.”

While federal student loan payments are currently paused, that will end 60 days after the case’s resolution. If this case has not been resolved by the 30th of June, payments will resume after 60 days. However, it will likely be months before borrowers learn the outcome of the case.

Copyright 2023 KNOP. All rights reserved.