Student loans

On Tuesday, the justices will hear expedited arguments in a challenge to the Biden plan brought by six states — Missouri, Nebraska, Iowa, Arkansas, Kansas and South Carolina.

A college education is often touted as the means to a successful and comfortable life. For students who take out loans, the burden of debt puts brakes on wealth building for them and their families.

The program to erase student loan debts for millions of borrowers hit a brick wall Thursday when it was blocked by a U.S. District Court judge. The administration quickly appealed the decision.

The Eighth Circuit Court of Appeals issued the stay, ordering the Biden administration not to act on the program while it considers a motion from six Republican-led states to block loan cancellation.

Justice Amy Coney Barrett, who is assigned to the Seventh Circuit Court of Appeals, was the one who received the emergency application brought by a Wisconsin taxpayers group.

Six states, including Missouri and Kansas, are arguing that the Biden administration's debt relief plan harms entities that service the loans and treasuries that would benefit from taxes on forgiven debt.

The Biden administration has quietly changed its guidance to disqualify borrowers who have privately-held FFEL and Perkins loans.

In a letter to Biden, Republican governors say they support "making higher education more affordable" but don't want to "force American taxpayers to pay off the student loan debt of an elite few."

President Biden announced a sweeping effort to forgive up to $20,000 of federal student loan debt for Pell Grant recipients, and up to $10,000 for other borrowers making under $125,000 a year.

President Biden extended relief for federal student loan borrowers for an additional 90 days because borrowers are "still coping with the impacts of the pandemic." Payments now resume May 1.