BY JULIO RODRIGUEZ
A Perspective
Student debt hangs over the heads of millions of young Americans like the Sword of Damocles. It prevents us from buying homes, opening businesses, saving for retirement and even getting married.
It is a 10-30 year sentence in debtor’s prison.
Last year the Biden Administration and U.S Department of Education announced a three-part plan to forgive up to $20,000 in individual debt for millions of borrowers.
A dream come true.
A nightmare followed.
Our rightwing Supreme Court has decided to weigh in.
Why on earth does the Supreme Court need to be involve itself in something that can elevate the lives of millions of Americans?
Republicans. Specifically, loudmouthed Republicans.
Five Republican-dominated states (Nebraska, Missouri, Arkansas, Iowa and South Carolina) filed a lawsuit in September to block the forgiveness program. Its reasons are specious, but with our politicized court, debt holders fear the worst.
GOP governors argue it violates the Separation of Power Act and Administrative Procedures Act. Separation of power is a constitutional doctrine that separates the executive, legislative and judicial. It is designed to maintain a balance of power. The Administrative Procedures Act determines the process by which federal agencies develop and issue regulations.
These clearly have nothing to do with student loans.
The fearless five states argue they have standing to sue due to The American Rescue Plan, passed in 2021 for COVID relief. They insist the relief should be taxed, which is consistent with the Republican Party’s war on poor people.
Then there is Maniacal Missouri, the Florida of the Midwest. Missouri has MOHELA, the Missouri Higher Education Loan Authority, an alleged nonprofit loan servicing agency that has made a lot of GOP donors wealthy on the backs of students. Missouri argued in the suit that if the loans were discharged, the nonprofit might not make a profit. Seriously.
In a moment of clarity and logic, Missouri District Judge Henry Autrey dismissed the case outright. Unfortunately, this eventually passed the case up to the Supreme Court.
Student debt relief has other foes. At least 126 House Republicans filed a “friends of the court” brief with the Supreme Court urging justices to strike down Biden’s plan. They claim Biden “overreached” and lacks authority to forgive loans.
While these Republican states remain focused on helping rich supporters who make campaign contributions, they threaten the enormous good this plan can do.
Canceling loans would help with deficit reduction. The $300 billion put into the hands of millions of college graduates would be a boon to the economy. Borrowers could put that money toward starting businesses, purchasing a home and paying off other debts.
Canceling the debt would ease financial hardship for vulnerable Americans. Most Americans support debt relief and support its young people. Let’s hope the Supremes sing the right notes this time and allow debt relief. Maybe it’s not great for Missouri GOP donors, but it is good for America.
Illustration by Edmundo Godinez/Staff