Here's how the HEROES Act impacts student loan borrowers

WASHINGTON — The student debt relief program announced last week – canceling up to 20 thousand dollars in education loans for millions of borrowers – delivers on a promise President Joe Biden made on the campaign trail.

It’s generated a lot of conversation---and questions over how it’s possible. The Biden Administration has cited the HEROES Act, but not the one passed during the pandemic.

RELATED: Biden announces student loan relief for borrowers making less than $125,000

THE QUESTION:

What's the HEROES Act, and what does it have to do with student loans?

THE SOURCES:

• The Higher Education Relief Opportunities for Students, or “HEROES Act"
• The Department of Education
• The Biden Administration

WHAT WE FOUND:

As people wait for more information from the Department of Education on what to do next to claim this loan forgiveness benefit, there’s also the question of if the program could get tied up in court.

The Biden Administration points to a bill called the HEROES Act as giving them authority for the sweeping student debt cancelation program.

The HEROES Act was passed after 9-11 that allows for the forgiveness of student loan requirements during certain periods of hardship in the country, like during a war or national emergency. It became law while US troops were fighting in Iraq and Afghanistan, and lawmakers agreed they should be protected from growing loan burdens.

RELATED: Yes, eligible public service workers can still get full federal student loan forgiveness

This accompanying Department of Education legal opinion cites the HEROES act as justification for the debt cancellation program, which the Biden administration has said is directed at "addressing the financial harms caused by the COVID-19 pandemic." 

The Department of Education also stood on the HEROES Act to initially pause student loan collection in 2020, during the Trump Administration.

RELATED: You won’t have to pay federal taxes on student debt relief, but states could tax it as income

However, some say this is too broad an interpretation of the HEROES act, or even a case of presidential overreach. Members of his own party, even, have long questioned if this is something the president has the authority to do.

In order for it to actually face a legal challenge though, someone would have to make a case in court that they've been harmed by the widespread student debt cancelation.