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Biden v. Nebraska

Student loan debt holders take part in a demonstration outside of the white house staff entrance to demand that President Biden cancel student loan debt in August on July 27, 2022, at the Executive Offices in Washington, DC.
Student loan debt holders take part in a demonstration outside of the white house staff entrance to demand that President Biden cancel student loan debt in August on July 27, 2022, at the Executive Offices in Washington, DC. | Getty Images for We, The 45 Million/Jemal Countess

Last August, the Biden administration announced that it was unrolling a plan to forgive student loan debt.

The plan involved having the Department of Education provide up to $20,000 in debt cancellation to Pell Grant recipients and up to $10,000 in debt cancellation to non-Pell Grant recipients.

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The debt cancellation plan would be made available for individuals who make less than $125,000 a year and for married couples who make less than $250,000 a year.

Additionally, the administration had planned to continue the pause on federal student loan repayment through Dec. 31, 2022, with payments to resume this month.

Six states, including Nebraska, sued the administration over the debt forgiveness plan, arguing that it violated the Administrative Procedure Act and the separation of powers.

In November, a three-judge panel of the Eighth U.S. Circuit Court of Appeals unanimously ruled against the Biden administration, granting a preliminary injunction against the plan.

Oral arguments were held before the Supreme Court last week.

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