Supreme Court to decide on student loan forgiveness

WASHINGTON (NEXSTAR) — The fate of millions of student borrowers hangs in the balance.

The Supreme Court could weigh in on the Biden Administration's student loan forgiveness program as early as Thursday, deciding if roughly 43 million Americans can have some of their student loans forgiven.

"We are waiting any day now,” said U.S. Education Secretary Miguel Cardona.

He said he's hopeful the justices will side with the Biden Administration, allowing it to follow through on plans to erase $10,000 of student debt for most eligible borrowers.

"They shouldn't be fighting to give $10,000 to people who are middle class people, who are people struggling to make ends meet,” said Cardona. “The Supreme Court’s decision is going to be a critical one.”

But those challenging the forgiveness program call it inherently unfair and argue the president abused his emergency powers to create it.

"The answer is pretty clear he did,” said GianCarlo Canaparo, a legal fellow at the Heritage Foundation.

Canaparo said he believes the states objecting have a solid case but also admits the situation is “in somewhat unchartered waters."

He notes recent Supreme Court decisions favor the Biden Administration. He was asked if any of the court’s prior decisions concern him.

"Up until a couple of weeks ago I would have said no,” said Canaparo. “It's not a good sign."

The White House won't say what will happen if the court strikes down the forgiveness program. Regardless, payments on all student loans resume at the end of August.