June 30, 2023- The Supreme Court on Friday struck down President Joe Biden’s federal student loan forgiveness plan, denying tens of millions of Americans the chance to get up to $20,000 of their debt erased.
The ruling, is a massive blow to those who have received loans after being promised loan forgiveness by the Biden administration last summer.
The 6-3 majority ruled that at least one of the six states that challenged the loan relief program had the proper legal footing, known as standing, to do so.
The high court has also stated that President Biden did not have the authority to instruct hus Education secretary to cancel such a large amount of debt without authorization from Congress and agreed the program would cause harm to the plaintiffs.
The student loan forgiveness plan reached the supreme court after Biden announced he’d cancel up to $10,000 in federal student debt for most borrowers, and as much as $20,000 for those who’d received a Pell Grant in college, a form of aid for low-income families.
When the Biden administration rolled out its loan forgiveness plan, it also released a 25-page memo by the U.S. Department of Justice asserting that its relief was permitted by the Heroes Act of 2003 – a product of the 9/11 terrorist attacks, and which grants the president broad power to revise student loan programs during national emergencies. The country was operating under an emergency declaration due to Covid-19 at the time.
However, Biden’s plan has faced several legal issues against his debt forgiveness plan. The justices heard oral arguments on several cases at the end of February.