Supreme Court to hear arguments on Biden’s student loan handout plan, cancellations remain blocked

The U.S. Supreme Court is set to hear arguments in February on the merits of President Biden’s student loan forgiveness program, Fox News Digital has learned. 

For now, the forgiveness program will remain blocked, and the court likely won’t make a decision on whether the widespread loan cancellations are legal until late June. That's around the time the newly extended pause on loan repayments is set to expire.

The administration had wanted a court order that would have allowed the program to take effect even as court challenges proceed. But as a fallback, it suggested the high court hold arguments and decide the issue.

BIDEN ADMINISTRATION NOTIFYING BORROWERS THEY ARE APPROVED FOR STUDENT LOAN FORGIVENESS

Biden's plan promises $10,000 in federal student debt forgiveness to those with incomes of less than $125,000, or households earning less than $250,000. Pell Grant recipients, who typically demonstrate more financial need, are eligible for an additional $10,000 in relief.

The Congressional Budget Office has said the program will cost about $400 billion over the next three decades.

More than 26 million people already applied for the relief, with 16 million approved, but the Education Department stopped processing applications last month after a federal judge in Texas struck down the plan.

The Texas case is one of two in which federal judges have forbidden the administration from implementing the loan cancellations.

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In a separate lawsuit filed by six states, a three-judge panel of the 8th U.S. Circuit Court of Appeals in St. Louis also put the plan on hold, and that case is before the Supreme Court.

The Associated Press contributed to this report.