The US Supreme Court has rejected President Joe Biden’s plan to eliminate a substantial amount of student debt, resulting in widespread disappointment. The ruling, with a 6-3 majority, effectively terminates the proposal that aimed to forgive around $10,000 per borrower, impacting over 40 million Americans. Biden expressed his frustration and promised to explore alternative measures within existing laws to alleviate the burden of university debt. The court’s decision was based on the argument that the president had exceeded his authority. Despite this setback, Biden pledged to collaborate with the Department of Education to find alternative solutions. The total federal student debt has significantly increased over the past 15 years, reaching $1.6 trillion. The Biden administration faced legal challenges from conservative states and individual borrowers who questioned the president’s authority to enact such broad debt cancellation. The Supreme Court concluded that the individual borrowers lacked standing to challenge the plan.
The Biden administration argued in February that the Higher Education Relief Opportunities for Students Act (Heroes Act) granted them the authority to modify loan provisions during national emergencies. However, the Supreme Court ruled that the administration had exceeded its powers, as the Heroes Act only allowed for modest adjustments, not a complete transformation. Justice John Roberts emphasized that the loan forgiveness program created by the administration was significantly different from previous implementations and extended forgiveness to almost all borrowers. The court’s decision aligned with ideological divisions, with the three liberal judges dissenting. Justice Elena Kagan expressed concern that the court was overstepping its role by dictating national policy on student loan forgiveness, emphasizing that Congress had authorized the plan.
