Biden's student debt relief plan challenged at Supreme Court

The US Supreme Court heard arguments in a challenge to President Joe Biden's plan to erase nearly $400 billion of student debt, with all eyes on how far the conservative-dominated bench is willing to go to override the Democratic leader.

The court's ruling, expected before June 30, will decide whether millions of Americans will see up to $20,000 of debt disappear, but could also have implications for future presidential actions.

About 200 protesters gathered outside the court, carrying signs backing Biden's policy.

Relying on a Covid-related legal justification, Biden announced his student loan forgiveness plan last August, shortly before the crucial midterm elections.

"This relief is critical to over 40 million Americans as they recover from the economic crisis caused by the pandemic," he tweeted.

"We're confident it's legal. And we're fighting for it in court."

Republican-led states were quick to claim he had overreached his authority and an appellate court halted the measure in November.

Under the relief plan, $10,000 would be cut from all loans owed by people earning less than $125,000 per year. For students who went to university with need-based government assistance known as Pell grants, the relief would be $20,000.

During his 2020 campaign, Biden pledged to act to address the massive amounts of debt US students take on to attend higher education -- the White House says nearly 43 million Americans hold $1.6 trillion in federal student loans.