(NewsNation) — The Supreme Court is expected to announce a major decision Friday on President Joe Biden’s plan to wipe away or reduce student loans held by millions of Americans.
Biden had proposed erasing $10,000 in federal student loan debt for those with incomes below $125,000 a year, or households that earn less than $250,000. He also wanted to cancel an additional $10,000 for those who received federal Pell Grants to attend college.
When the court heard arguments in the case in February, Biden’s plan didn’t seem likely to survive, though it’s possible the justices could decide the challengers lacked the right to sue and the plan can still go forward.
The justices are weighing two separate lawsuits — brought by six GOP-led states and two individual borrowers — and Biden’s plan must survive both.
With advocates and borrowers widely concerned the justices will strike down the plan, Alan Collinge, the co-founder of Student Loan Justice, joined “On Balance With Leland Vittert” to discuss the impending Supreme Court ruling.
“This is a pretty flimsy case,” Collinge said. “The plaintiffs really don’t have any standing. The state of Missouri and its sort of adjunct really aren’t suffering any financial losses here. So I really think if Amy Coney Barrett is consistent, I think that they’ll affirm this cancellation, just on the lack of standing alone.”
The court holds a strong 6-3 conservative majority that seemed skeptical of the administration’s ability to forgive the debt during oral arguments in February.
But as several recent decisions show, the court sometimes hands down a surprise ruling.
“Whichever way it goes,” Collinge said. “This is not a win for student loan borrowers; $10(,000) or $20,000 is a drop in the bucket for the worst current borrowers.”
The administration has said millions of borrowers would benefit from Biden’s program.
Collinge said that 85% of all federal student loan borrowers, even before the COVID-19 pandemic, had increasing balances.
“They were never going to be able to repay their loans,” he said.
Going further, Collinge called the loans unconstitutional, calling out bankruptcy rights, statutes of limitations of fair debt collection laws and truth in lending.
“These federal student loans have been turned into licenses to steal and the federal government, by the way of the taxpayer, they have made nearly every nickel of their money back,” he said.
Regardless of what happens at the high court, loan payments that have been on hold since the start of the coronavirus pandemic three years ago are set to resume this summer.
Already this week, the court’s final days before they go on their summer break, the justices have released important decisions on other issues including affirmative action, voting rights and religious rights.
The Hill and the Associated Press contributed to this report.
