The Supreme Court decided Friday to accept the Biden administration's appeal defending its proposal to ease applications for the Borrower Defense Student Debt Relief Program.
In a short order, the justices agreed to review an appeals court ruling that upheld a challenge by Texas school groups that argued the government lacked the authority to expand the program.
The court's order could bring the case to trial this session, resulting in oral arguments being held this spring and a decision by early summer.
The Biden administration sought to make it easier for borrowers to apply for Borrower Defense around the same time the president was fighting for universal forgiveness.
The Borrower Defense Program allows individuals who have been defrauded by their school to receive loan forgiveness. Prominent examples include Corinthian University and ITT Technical Institute.
Borrowers have been duped by tactics such as inflated job offers and deceptive recruiting tactics.
The Department of Education argued to the high court that the plaintiffs, Texas Career Colleges and Schools, were not eligible and that the new rules were legal under the Higher Education Act.
“The Education Act also makes clear that the Department may evaluate a borrower's defenses in an administrative proceeding initiated in response to a borrower's request. ” reads the petition filed by the government in October 2024.
Texas groups, on the other hand, argued that the federal government was exceeding its authority.
“Courts play a critical role in ensuring that executive agencies comply with the restrictions imposed by Congress,” the group said in December.
The Borrower Defense Program has been the result of political ping pong, as the Obama administration filed a formal application for the program, the Trump administration restricted parts of the program, and Biden sought to re-expand the program. Ta.
So far, President Biden has provided $28.7 billion in student debt relief to more than 1.6 million borrowers through the Borrower Defense Program.
