Supreme Court Rejects Biden's Plan to Erase $400 Billion in Student Loans
The U.S. Supreme Court has overturned President Biden's attempt to erase the student loan debt for millions of Americans. The court ruled Friday that the Biden administration overstepped its authority.
The 6-3 decision effectively ends the $400 billion plan which means borrowers will likely have to start repaying their loans by late August.
President Joe Biden had unilaterally announced the plan last year, and since Congress didn't have a role in the move the Supreme Court said Biden didn't have the power to do it.
The administration had argued that the 2003 HEROES Act gave Biden the power he claimed. The court disagreed.
“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 and the court’s two other liberals dissented. She said it's her opinion that the majority of the court “overrides the combined judgment of the Legislative and Executive Branches.”
College loan borrowers still received a substantial break during this whole process. That's because payments have actually been on hold since the start of the coronavirus pandemic more than three years ago.
Twenty-six million people had applied for relief and 43 million would have been eligible, the administration said.
