Dem
51
GOP
49
One of Joe Biden's 2020 campaign promises was to cancel some student debt. He has tried, but has been stymied by the courts at every turn. The Supreme Court has clearly stated that Biden does not have the authority to cancel student debt. Only Congress can do that.
The latest incident unfolded yesterday. In July 2023, Biden rolled out a program called SAVE that lowers loan payments for undergraduate loans to 5% of a borrower's discretionary income above 225% of the federal poverty level. It used to apply only above 150%. It also has other features that help borrowers—for example, for borrowers with debts of $12,000 or less who have never missed a payment for 10 years, it cancels the debt. Biden said he had the authority to do these things under the Higher Education Act.
Several state AGs disagreed and sued. The U.S. Court of Appeals for the Eighth Circuit disagreed and temporarily blocked all loan forgiveness under the SAVE plan. Biden appealed to the Supreme Court, saying that the Eighth Circuit Court misinterpreted the law and asked it to reinstate the SAVE program. Yesterday, the Supremes turned down Biden's request and sent it back to the Eighth Circuit for a final ruling.
Politically, this puts Kamala Harris on the spot. On the one hand, she could say she wants to cancel some student debt, which would win her fans among people who went to college and incurred debt. On the other hand, it could get her enemies among blue-collar workers who borrowed money to buy a truck and aren't getting any relief. They don't see why college students should get their loans canceled but they are required to pay off their truck loans. Abstract arguments like: "The government believes that an educated work force is in the national interest so it wants to help pay for it. Your decision to buy a truck is a personal one, not one related to an important national goal, so no, you don't get relief," aren't going to cut it. Harris definitely wants young voters, many of whom have a student loan, whereas she could conclude that blue-collar workers are a lost cause. This is where her political instincts will be sorely tested. (V)