Controversy over student loan forgiveness. 


Helium Summary: The Biden Administration's plan to cancel $39 billion in student loans is facing a legal challenge from the Mackinac Center for Public Policy and the Cato Institute.

Critics argue this plan exceeds the administration's authority [Fox Business].

The decision follows a past Supreme Court ruling against a larger student loan forgiveness plan [ (Opinion)].

Meanwhile, the freeze on repayments, initiated due to COVID-19, is lifting [Forbes], leading to financial worries for many, including those facing their first repayments, like Gen Z [Forbes].

August 11, 2023


Pro-Biden Relief Plan

Biden's cancellation plan aims to alleviate strain on borrowers, particularly those in low-income brackets, making repayments adjustable [Alternet]

Against Biden Relief Plan

Critics argue the plan solely serves borrowers and ignores tax expenses from other population sectors uninvolved in loan contracts []

Educational Bias

Observations suggest systemic issues with increasing tuition fees and dependence on governmental loan programs as a primary source of revenue for colleges [ (Opinion)].

Relevant Trades


Who filed the lawsuit against the Biden administration's student loan forgiveness plan?

The Cato Institute and Mackinac Center for Public Policy filed the lawsuit [Fox Business].

What's the primary concern on lifting the repayment freeze?

Many borrowers, especially the young or unemployed, are worried about making repayments in the wake of Covid-19, particularly those dealing with repayments for the first time [Daily Kos][Forbes].

News Media Bias (?)

The listed sources display a slight leaning towards pro-loan forgiveness, often portraying the borrowers' difficulties in returning to repayment.

However, they do represent perspectives of critics [ (Opinion)][].


This issue is within the broader context of student loan debt crisis, a mix of systemic educational issues and the consequences of a pandemic.


Biden's plan, aimed at lessening borrower burden, faces opposition arguing overreach. As legal battles ensue, repayment freeze lifts, causing borrower anxiety.

Potential Outcomes

1. Biden's plan gets blocked, leading to no cancellations.

2. The plan proceeds, cancelling $39 billion in loans.

3. The number of delinquencies increase after repayment freeze lifts.

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