Associated Press
A sharply divided Supreme Court on Friday effectively killed President Joe Biden’s $400 billion plan to cancel or reduce federal student loan debts for millions of Americans.
The 6-3 decision, with conservative justices in the majority, said the Biden administration overstepped its authority with the plan, and it leaves borrowers on the hook for repayments that are expected to resume in the fall.
Biden was to announce a new set of actions to protect student loan borrowers and would address the court decision later Friday, said a White House official. The official was not authorized to speak publicly ahead of Biden’s expected statement on the case and spoke on condition of anonymity.
The court held that the administration needed Congress’ endorsement before undertaking so costly a program. The majority rejected arguments that a bipartisan 2003 law dealing with student loans, known as the HEROES Act, gave Biden the power he claimed.
“Six States sued, arguing that the HEROES Act does not authorize the loan cancellation plan. We agree,” Chief Justice John Roberts wrote for the court.
Justice Elena Kagan wrote in a dissent, joined by the court’s two other liberals, that the majority of the court “overrides the combined judgment of the Legislative and Executive Branches, with the consequence of eliminating loan forgiveness for 43 million Americans.”
Loan repayments will resume in October, although interest will begin accruing in September, the Education Department has announced. Payments have been on hold since the start of the coronavirus pandemic more than three years ago.
The forgiveness program would have canceled $10,000 in student loan debt for those making less than $125,000 or households with less than $250,000 in income. Pell Grant recipients, who typically demonstrate more financial need, would have had an additional $10,000 in debt forgiven.
Twenty-six million people had applied for relief and 43 million would have been eligible, the administration said. The cost was estimated at $400 billion over 30 years.
5 comments
R.Bruce
June 30, 2023 at 12:24 pm
Basic contract law. A third party cannot change terms of a contract forcing a fourth party to pay for it.
Michael
June 30, 2023 at 3:29 pm
Actually, no. This isn’t a cut and dry ‘contract’ per se as you are implying, and even if you would like to believe it is, there are only 2 parties involved which is the Government and the borrower. That the government is infighting or that the government uses a 3rd party company to handle the payments, matters not. Complaining about the woes of the supposed fourth entity (the tax payer) is hilarious. In fact, your statement is so off base concerning this issue… I cant imagine anything anyone says regarding it would get past your total brain lock about it. I’m not even going to bother.
Dr. Franklin Waters
June 30, 2023 at 12:24 pm
Wow. Tough year for the GOP.
With both this and that abortion ruling the GOP brand should now be dead and buried for anybody under the age of 50.
I literally have no concept of how anybody that’s not a multi-millionaire could also call themselves a Republican. It’s just mind boggling how so many people vote against their own interests.
Michael K
June 30, 2023 at 1:31 pm
Funny how these justices accept millions from billionaires to cater to their interests, and do nothing to help struggling Americans. Funny how DeSantis channeled millions in federal COVID aid to a rich donor, yet cries about federal spending.
The hypocrisy shows the widening gap of inequality in America.
Mercury Eduardine Saladin 👍
June 30, 2023 at 1:34 pm
Well now Kavanaugh should be considered the GOP president for life because the Republicans will never win a presidential election again… thanks to Orange Hitler’s repugnant and abominable crime spree and the illegitimate SCOTUS because A) They lied to get confirmed and B) they were nominated as a result of dirty politics… Obama was supposed to appoint the justices but one man broke precedent and denied Garland that chance.. now we have whacko court and ORANGE HITLER will face Garland for his crime spree instead. That’s about the extent of anything close to justice in the USA right now.
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