Supreme Court Strikes Down Biden's Student Loan Forgiveness Plan
Millions of Borrowers Disappointed by Decision
Department of Education to Explore Alternative Relief Options
WASHINGTON, D.C. (June 30, 2023) - The Supreme Court ruled 6-3 on Friday to invalidate President Biden's student loan forgiveness plan, leaving millions of borrowers feeling disappointed and stuck with their debt.
"We are deeply disappointed by the Supreme Court's decision to block President Biden's student loan forgiveness plan," said Secretary of Education Miguel Cardona in a statement. "Millions of Americans could have benefited from this relief, and we will explore all alternative options to ensure that student loan borrowers get the support they need."
Biden's plan, announced in August 2022, would have forgiven up to $10,000 in student loan debt for borrowers making under $125,000 per year, and up to $20,000 for those who received Pell Grants. The plan was challenged by several states and conservative groups, who argued that the administration did not have the authority to implement such a program without congressional approval.
The Supreme Court agreed with the challengers, ruling that the administration had exceeded its authority in enacting the plan. The Court found that the authorization granted to the Secretary of Education under the HEROES Act, which was intended to provide relief to borrowers during the COVID-19 pandemic, was not sufficient to justify such a broad forgiveness program.
The decision is a major blow to Biden's effort to address the student loan crisis. The administration has estimated that the plan would have provided relief to more than 40 million borrowers. However, the administration has indicated that it will continue to explore alternative options to provide relief to student loan borrowers, including income-driven repayment plans and changes to the Public Service Loan Forgiveness program.
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