Cousins! The Supreme Court has officially struck down President Biden‘s 400 billion dollar student loan forgiveness program!
Within an even 6-3 decision the Supreme Court ruled that Biden alongside his administration overstepped their authority in attempting to cancel or reduce the hefty loans of over forty million Americans; reports ABC News. Borrowers are now responsible for their loan amounts which are scheduled to resume later this Summer.
It has been indicated that Biden’s original plan had been structured surrounding the pandemic as he considered the economic plunge Americans had undergone. Sources state Biden’s student loan forgiveness plan would’ve erased $10,000 in student debt for all borrowers that earned less than $125,000 a year and $20,000 for borrowers who received Pell grants.
Republican-led states such as Nebraska, Missouri, Arkansas, Iowa, Kansas, and South Carolina are said to have argued that Biden’s program was ultimately an overreach. Despite the administration arguing that the impact of Covid made the plan lawful following the 2003 HEROES Act, and declaring the program as a national emergency; Chief Justice John Roberts rejected the notion.
Within a forwarded precedent Chief Justice John has stated, “requires that Congress speak clearly before a Department Secretary can unilaterally alter large sections of the American economy.”
The statement continues, “The Secretary asserts that the HEROES Act grants him the authority to cancel $430 billion of student loan principal. It does not.”
“We hold today that the Act allows the Secretary to ‘waive or modify’ existing statutory or regulatory provisions applicable to financial assistance programs under the Education Act, not to rewrite that statute from the ground up.”
The highest court ruled that Biden would need Congress’s endorsement prior to taking on such a costly task.
Biden responded to the Supreme Court’s decision in stating that, “the fight is not over.”
“I believe that the Court’s decision to strike down our student debt relief plan is wrong,” he said in an issued statement. “But I will stop at nothing to find other ways to deliver relief to hard-working middle-class families. My Administration will continue to work to bring the promise of higher education to every American.”
The House of Democrats has criticized the court’s decision and has encouraged Biden to explore further options to assist borrowers.
After a thre year pause due to the pandemic, student loans payments are scheduled to pick back up this fall in October with interest beginning to accrue in September.
Cousins, what are your thoughts on this?