White House faces legal questions with student loan forgiveness plan

The White House has stepped into tricky legal territory with a plan to erase $10,000 in federal student loan debt for millions of borrowers. 

The plan is expected to face legal challenges, which would cause uncertainty for borrowers who stand to benefit from the new policy. 

At the same time, there are also expected to be challenges for those planning to sue the administration over the plan.

Demonstrating standing in the case in particular is seen as a hurdle, leading some to doubt a future challenge will be successful.

The Biden administration relied on the 2003 Heroes Act enacted following the Sept. 11 terror attacks to underpin its plan. It argues that because of the COVID-19 emergency, the law gives the Education Department the authority to both suspend loan repayments through Dec. 31 and cancel loan debt for many borrowers.