In the Media
Brandon Duke Discusses Supreme Court Ruling Against Student Loan Forgiveness Plan with The Houston Chronicle
In the Media
Brandon Duke Discusses Supreme Court Ruling Against Student Loan Forgiveness Plan with The Houston Chronicle
July 6, 2023
Winston & Strawn attorney Brandon Duke recently spoke with The Houston Chronicle, where he discussed the U.S. Supreme Court’s decision striking down the Biden Administration’s plan to cancel up to $20,000 in student loan debt for qualifying borrowers. In the 6-3 ruling, the Court held that the Administration had overstepped its authority with the plan that would have provided over $400 billion in loan forgiveness to 43 million borrowers.
The Administration justified its plan under the HEROES Act, a 2003 law adopted by Congress granting the Secretary of Education authority to “waive or modify” the terms of federal student loan program during a national emergency to ensure that barrowers are not placed in a worse position financially because of the national emergency. In its decision, the Court interpreted the Secretary’s authority more narrowly and held that creating a new program waiving certain loans subject to additional limits and requirements was not allowed under the HEROES Act.
Brandon noted that the Court’s ultimate ruling isn’t surprising because it follows several recent decisions where the Court have questioned the assertion of significant statutory power by executive agencies. “The court, in line with a series of cases, has been skeptical of presidential uses of existing statutory authority that may not be in line with the original purpose of the law,” he said. This is true even in cases where the text of the law seems to support the agency’s action.