Biden's Pandemic - Why Do the States Have Standing to Bring This Case?

2min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

Biden administration says the states do not have standing to sue. The 8th Circuit focused on a servicer in Missouri that is created as a separate legal entity. It's supposed to put money in there to help pay for some education projects. States say they are feeling less money in its treasury because this entity known as Muhila is getting less money for servicing student loans.

President Biden’s plan to forgive federal student loan debt for millions of Americans has been frozen since a handful of Republican-led states sued to stop it. They argue the president doesn’t have the power to wipe away billions of dollars of debt on his own. It’s now up to the US Supreme Court to decide if they’re right.

Bloomberg Supreme Court correspondent Greg Stohr joins this episode to talk about the arguments on both sides, and where the 6-3 conservative majority might come down. And personal finance reporter Claire Ballentine explains what happens next for Americans with student debt if the court upholds Biden’s plan–or knocks it down.