Supreme Court to Hear Challenge to Biden Student Loan Forgiveness Rule

The case will determine the legality of expanded debt relief for borrowers defrauded by for-profit schools under the Biden administration's Borrower Defense rule.

The Supreme Court has agreed to review a lower court ruling that blocked the Biden administration's expansion of the Borrower Defense program, which forgives loans for students defrauded by their colleges.
The Borrower Defense program allows borrowers to seek debt relief if their schools engaged in misconduct, such as inflating job placement rates or using deceptive recruiting practices.
The Biden administration expanded the program in 2022 to streamline applications, but a Texas trade group representing for-profit schools argued the rule exceeded the Department of Education's authority.
The case comes as President Biden prepares to leave office, with his broader student loan forgiveness efforts repeatedly struck down by courts during his term.
A decision by the Supreme Court could narrow the scope of relief available to defrauded borrowers, particularly under the incoming Trump administration, which has historically restricted such programs.