SCOTUS will hear arguments on student debt relief case. How Kentuckians could fare

After a months-long legal standoff, President Joe Biden's student debt relief plan will finally get its day in court Tuesday, with the result set to impact millions of borrowers nationwide.

The U.S. Supreme Court will hear arguments regarding two lawsuits brought against Biden's plan, which would provide some relief from Americans' collective $1.6 trillion in student loan debt. The plan, originally announced in August, would give relief to about 43 million Americans — 20 million of whom could have their entire debt balance eliminated.

In Kentucky, thousands of borrowers stand to benefit, if and when the program clears its legal hurdles.

Here's what we know about the plan while it's in limbo with the Supreme Court.

Who benefits from Biden's student loan forgiveness plan?

For borrowers who make less than $125,000 a year or households with an income less than $250,000, Biden's debt forgiveness plan could provide up to $10,000 of relief. For folks who received a Federal Pell Grant, loans given to undergraduates with "exceptional financial need," the forgiveness could be up to $20,000.

Who's challenging Biden's student loan forgiveness plan?

Biden announced his plan to forgive student loans in August via executive action, but the plan has been controversial. In September, six Republican-led states — Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina — filed a lawsuit to challenge Biden's plans for student debt forgiveness, arguing that Biden acted beyond his authority. Two individual borrowers also sued the administration, claiming they wouldn't receive enough aid from the program, and were thus harmed by it.

A federal judge in Missouri ruled against those states in October, saying the states failed to establish legal standing, and that the court did not have jurisdiction over the case.

Hours later, however, a federal appeals court issued a stay prohibiting Biden from continuing forward with his plan to forgive student loans. A second block was placed on Biden's plan in November by a U.S. District Court in Texas.

The Biden administration argues that it has grounds to cancel student loans based on a law that allows the federal government to cancel debt during cases of emergency, like the COVID-19 pandemic.

What are experts saying about how the case could go down?

The Supreme Court must decide if Biden overstepped his authority or if those challenging the order — states and individual borrowers — have standing to sue.

Some experts say the Biden administration could convince the Supreme Court that the wrong plaintiffs sued, and if it does, then the administration could win the case.

Others say federal courts are making it more difficult for federal agencies to make major policy decisions without consulting Congress. An appeals court, for example, ruled against the Deferred Action for Childhood Arrivals program, also known as DACA, which is an Obama administration policy that protects undocumented immigrants brought to the U.S. as children. The Supreme Court also stopped a mandate from Biden requiring vaccine-or-testing requirements for employees at large companies. They also denied an Environmental Protection Agency attempt to reduce power plant emissions.

How many Kentuckians could benefit from Biden's student loan forgiveness plan?

More than half a million Kentuckians are eligible for some form of student loan debt forgiveness, according to an estimate from the Biden administration. Of that number, roughly 394,000 are Pell grant recipients.

Contact reporter Rae Johnson at RNJohnson@gannett.com. Follow them on Twitter at @RaeJ_33.

This article originally appeared on Louisville Courier Journal: Student debt relief update: SCOTUS set to hear arguments Tuesday