The Higher Education Relief Opportunities for Students Act of 2003, Pub. L. No. 108-76, 117 Stat. 904 (2003) (codified at 20 U.S.C. §§ 1098aa–1098ee) (“HEROES Act of 2003,” or “HEROES Act”), vests the Secretary of Education (“Secretary”) with expansive authority to alleviate the hardship that federal student loan recipients may suffer as a result of national emergencies. The Act provides that the Secretary may “waive or modify any statutory or regulatory provision applicable to” federal student loan programs if the Secretary “deems” such actions “necessary to ensure that” certain statutory objectives are achieved. 20 U.S.C. § 1098bb(a)(1)–(2). One of those objectives is to ensure that “recipients of student financial assistance . . . are not placed in a worse position financially in relation to that financial assistance because of” a national emergency. Id. § 1098bb(a)(2)(A). In 2020, the Secretary invoked this authority in response to the COVID −19 pandemic to suspend the repayment obligation and to waive interest payments on student loans for every borrower in the United States with a loan held by the federal government. See Federal Student Aid Programs, 85 Fed. Reg. 79,856, 79,862 (Dec. 11, 2020). Prior Secretaries have exercised the same authority to categorically waive statutory and regulatory obligations for borrowers residing or working in a disaster area in connection with a national emergency and for borrowers who suffered economic hardship as a result of a national emergency.
So the argument seems to be that the Secretary of Education (who works for the President and will likely do whatever they’re told to do) was given the authority to “waive statutory and regulatory obligations for borrowers residing or working in a disaster area in connection with a national emergency and for borrowers who suffered economic hardship as a result of a national emergency”, everyone* suffered economic hardship as a result of COVID, and waiving entire debts is one way of waiving obligations.
I think you’re right that there’s a good chance the Supreme Court won’t allow this. Theoretically, Congress isn’t supposed to delegate the authority make laws or spend money, but the Supreme Court usually allows it.. up to a point. Spending half a trillion dollars on to protect people from the impact of COVID… in mid-2022.. seems like it might be too far for the Supreme Court. Not to mention that the current Supreme Court is probably not super impressed by an obvious attempt to bribe Democrats.
This seems to be the official legal argument:
https://www.justice.gov/sites/default/files/opinions/attachments/2022/08/24/2022-08-24-heroes-act.pdf
So the argument seems to be that the Secretary of Education (who works for the President and will likely do whatever they’re told to do) was given the authority to “waive statutory and regulatory obligations for borrowers residing or working in a disaster area in connection with a national emergency and for borrowers who suffered economic hardship as a result of a national emergency”, everyone* suffered economic hardship as a result of COVID, and waiving entire debts is one way of waiving obligations.
I think you’re right that there’s a good chance the Supreme Court won’t allow this. Theoretically, Congress isn’t supposed to delegate the authority make laws or spend money, but the Supreme Court usually allows it.. up to a point. Spending half a trillion dollars on to protect people from the impact of COVID… in mid-2022.. seems like it might be too far for the Supreme Court. Not to mention that the current Supreme Court is probably not super impressed by an obvious attempt to bribe Democrats.