The idea, which called for forgiving up to $10,000 (£8,310) per debtor and $20,000 in some circumstances, was introduced by President Joe Biden the previous year, but lower courts stopped it.
While the nation’s top court deliberates over two legal challenges, millions more borrowers are in doubt.
Over 40 million Americans’ loans could be impacted by the judgment.
This includes approximately 20 million Americans, who might have had their whole student loan amounts wiped, as per White House estimates.
The lawsuits will receive a final decision from the conservative-majority 6-3 Supreme Court in June.
According to the Biden administration, a 2003 law called the Heroes Act gave it the authority to “waive or amend” loan terms to help borrowers who were impacted by “a war or similar military operation or global disaster.”
The government officials were pressed during Tuesday’s oral arguments about that wide interpretation of the legislation.
“43 million Americans and $500 billion are at issue here. How does that fit into the definition of modified as we usually use it?” Elizabeth Prelogar, the US Solicitor General, was questioned by Chief Justice John Roberts.
According to Mrs. Prelogar, “modify” in this situation could mean making significant adjustments to safeguard lenders. She continued by saying that the administration’s goal was to develop a benefits program rather than exercise legislative authority.
“Defaults and delinquencies will increase” if the strategy isn’t in place, she added.
