TPA on SCOTUS Hearing on Cancelling Student Debt

For Immediate Release                                                 Contact: Abigail Graham: (202) 417-7235

February 27, 2023                                                                              

WASHINGTON, D.C. – Tomorrow, the Supreme Court will hear oral arguments in Biden v. Nebraska, to determine whether or not the Biden administration has the authority to cancel up to $20,000 in federal student loan debt for borrowers. The Taxpayers Protection Alliance (TPA) is hopeful that the Supreme Court will rule to strike down the constitutionally dubious and fiscally reckless plan. 

In response, TPA Executive Director Patrick Hedger, offered the following comment:

“There is a lot at stake in this case, given this decision could cost taxpayers at least $400 billion. Not only is the administration’s forgiveness plan constitutionally suspect at best, but it only creates further problems for years to come. Taxpayers who already paid off their loans or made the difficult decision to pursue career paths that did not require a degree, will be on the hook for the debt of others. Research shows that those who would benefit the most from these policies are higher income earners, while lower income brackets will end up footing the bill.

“The Biden administration fails to see the long-term effects of their misguided policies and how cancelling student loans will only perpetuate irresponsible spending by universities—and in turn leave future borrowers with unrealistic expectations when it comes to their borrowing. Analyses have shown that even with President Biden’s loan cancellation, the amount of outstanding student debt will return to its current $1.6 trillion by 2028. The federal government owes current and prospective students’ long-term solutions, not short-term subsidies.

“Foregoing hundreds of billions in revenue, without congressional review, is a clear overreach by President Biden. TPA encourages the Supreme Court to set a strong precedent prohibiting this dangerous practice.”

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 Taxpayers Protection Alliance (TPA) is a non-profit, non-partisan organization dedicated to educating the public through the research, analysis and dissemination of information on the government’s effects on the economy.