Not very good news for your Friday morning: The Supreme Court struck down President Joe Biden’s student loan forgiveness plan, denying tens of millions of Americans the chance to get up to $20,000 of their debt cleared.
The vote was 6-3, with Six GOP-led states had challenged the program as executive power overreach. The Supreme Court has said President Biden does not have the authority for his nearly half-trillion dollar plan to forgive student loan debt. Chief Justice John Roberts also claimed the HEROES Act language was not specific enough, writing that the court’s precedent “requires that Congress speak clearly before a department secretary can unilaterally alter large sections of the American economy.”
Of course, this decision from the high court is a major defeat for Biden as he pursues reelection. As we previously reported, during his 2020 campaign, he pledged that his administration would forgive at least $10,000 of federal student loan debt.
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With the program, it would have canceled $10,000 in student debt for all borrowers who made less than $125,000 and up to $20,000 for borrowers who also received Pell Grants. Unfortunately, student loan payments are expected to restart in October following a three-year pause put in place during the pandemic. To note, interest on federal student loans will resume accruing in September.
As ABC News reports, the White House earlier this week continued to decline to say what a “Plan B” would be if the court rejected the plan.
Biden nor the administration has yet to publicly release a statement on the Supermene Court’s decision.
Meanwhile, the NAACP has released a lengthy statement:
“The Supreme Court’s decision to strike down the President’s student debt program is a clear disregard for what millions of Americans need – especially Black Americans. Despite today’s upsetting ruling, we demand that the Biden Administration delivers on the promise of student loan debt relief. Education has long been regarded as a path toward generational wealth, economic liberation, and securing the American dream. Let’s be clear – student debt is killing that dream. The NAACP will not stop until student debt relief becomes a reality. America has so easily forgiven greedy corporations for their debts – why would they refuse to provide the same grace and investment in our own students? The NAACP demands that this administration fulfills its promises, and that this country makes this necessary and worthy investment in the Aliture of our union.”