The Legal Logic Behind Biden's New Student Debt Forgiveness Plan

President Joe Biden’s new student debt relief initiative relies on authority given by the 1965 Higher Education Act. Will this program fare better than Biden’s previous effort to forgive student debt? 

The Act: The Higher Education Act, established under President Lyndon B. Johnson in 1965, includes a provision that allows the Education Secretary to “compromise, waive, or release any right, title, claim, lien, or demand, however acquired, including any equity or any right of redemption.”

HRE vs. HEROES: In his last attempt to forgive student debt, Biden cited the 2003 HEROES Act as giving him authority to forgive debt. The HEROES Act does authorize the Education Secretary to “waive or modify any statutory or regulatory provision” in times of national crisis. Biden said the COVID-19 pandemic qualified as a national crisis as outlined in the bill. The Supreme Court disagreed, striking down the program. The Higher Education Act, on the other hand, does not rely on a national crisis to authorize debt forgiveness. For this reason, many progressive lawmakers have advocated Biden pursue this course of action from the start.

Will It Work? In a White House statement, Biden signaled possible political pushback to the new plan, stating, “Republican lawmakers – who had no problem with the government forgiving millions of dollars of their own business loans – have tried everything they can to stop me from providing relief to hardworking Americans.” ABC News (Lean Left bias) indicated the plan may face a legal battle similar to the previous effort.