Supreme Court to Review Another Biden Student Loan Rule

Source: Bloomberg Law

Jan. 10, 2025, 7:07 PM EST


The US Supreme Court agreed to review another piece of the Biden administration’s student loan forgiveness efforts, this one dealing with the administrative process for loan discharges based on misleading or deceptive practices by schools.

The justices on Friday agreed to review a ruling by the US Court of Appeals for the Fifth Circuit that struck down the new procedures.

The conservative appellate court said the latest rule had “numerous statutory and regulatory shortcomings,” noting it overturned regulations issued by the Trump administration.

The Biden administration told the justices that the previous rule caused an “extensive backlog,” and that a new regime was necessary to prevent claims from piling up in the future. Among other provisions, the new standard allows the Department of Education to consider deception claims on a class basis, rather than individually.

Read more: https://news.bloomberglaw.com/us-law-week/supreme-court-to-review-another-biden-student-loan-rule