SUPREME COURT OF THE UNITED STATES | OCTOBER TERM 2022
Biden v. Nebraska | Docket Number: 22-506
Dept. of Education v. Brown | Docket Number: 22-535
The Federal Student Loan Forgiveness hearings at the Supreme Court today are significant because they involve a legal challenge to a government policy that could affect the lives of millions of Americans who have student loan debt. Student loan debt can indirectly affect college and university building construction in a few different ways:
- Reduced enrollment: High levels of student loan debt can discourage some potential students from enrolling in college or university, particularly if they believe that the cost of education will leave them with insurmountable debt. This can lead to reduced enrollment, which can impact a school’s budget and its ability to fund new building construction projects.
- Reduced state funding: State funding for higher education has declined in many states in recent years, as policymakers have shifted resources toward other priorities. As a result, many colleges and universities have had to rely more heavily on tuition revenue and other sources of funding to finance building construction projects. However, high levels of student loan debt can also impact state funding decisions, as policymakers may be less inclined to invest in higher education if they believe that students are already burdened with too much debt.
- Increased operating costs: High levels of student loan debt can also impact the operating costs of colleges and universities, particularly if they have to allocate more resources toward financial aid and student support services. This can make it more difficult to fund building construction projects, which may be viewed as a lower priority in tight budgetary times.
Overall, while student loan debt may not directly impact building construction decisions at colleges and universities, it can play a role in shaping the broader financial context in which those decisions are made.
Certiorari before Judgment: No. 22–535. Argued February 28, 2023—Decided June 30, 2023
