WASHINGTON, D.C. — In a significant blow to President Biden’s student loan relief agenda, the Supreme Court of the United States ruled 6-3 today, to invalidate the administration’s plan to forgive up to $20,000 in student loan debt for borrowers earning less than $150,000 annually. The court determined that the Biden administration lacked the legal authority to implement the program.
The Biden administration contended that the program fell within its authority under the Higher Education Act, which grants the education secretary the ability to modify or waive the terms of federal student loans under specific circumstances. The administration also maintained that the program was crucial to assist borrowers grappling with loan repayment challenges due to the economic fallout of the COVID-19 pandemic.
The Supreme Court’s decision represents a significant setback to President Biden’s efforts to provide relief to student loan borrowers. It also serves as a triumph for the states that challenged the program, potentially influencing the administration’s future attempts at executive action.
The proposed program would have benefited approximately 40 million borrowers, which accounts for roughly 1 in 8 Americans. The average eligible borrower carried a student loan debt of $37,000, and the program was projected to cost an estimated $300 billion over the course of 10 years.
