The Supreme Court has been knocked down President biden$400 million student loan forgiveness plan on Friday (June 30). It claimed the administration had no power to cancel student loan loans.
Supreme Court Finally Decides Biden’s $400 Million Loan Forgiveness Plan Is “Too Important”
Dissident Justice Elena Kagan stated that the court ultimately found the amount of financial assistance to be “excessive” even though Congress authorized the pardon plan.
“Congress has authorized the pardon plan (among many other actions); The secretary put it in place; and the President will be held accountable for its success or failure,” Kagan wrote, according to the Washington Post. “But this Court ruled today that approximately 40 million Americans will not receive the benefits of the program, because (as the Court said) that assistance is too ‘substantial’.”
The Related press reported that the decision against the plan was 6-3, with conservative judges in the majority and liberal judges in the minority.
RELATED: Biden administration cancels $3.9 billion in additional student loan debt for more than 200,000 students enrolled at ITT Technical Institute
Biden overstepped authority with student debt relief plan, supreme court rules
The court decided that Biden exceeded his authority by announcing the forgiveness of a federal debt of $10,000 to $20,000 for student loans in August 2022.
According to related press, 26 million Americans have applied for relief, but at least 43 million will be eligible before Friday’s ruling. Experts estimate the cost up to $ 400 billion over 30 years.
Biden has previously argued that the Higher Education Relief for Students Opportunity Act (HEROES) of 2003 allows him to cancel or reduce student loan debt. However, Chief Justice John Roberts countered that the HEROES Act “does not authorize a loan cancellation plan.”
“Six states sued,” wrote Chief Justice John Roberts, “arguing that the HEROES Act does not authorize the loan cancellation plan. We agree.”
The Supreme Court has blocked the Biden administration’s plan to clear student debt.
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– CNN (@CNN) June 30, 2023
Friday’s ruling comes as loan payments are set to resume in October
Meanwhile, loan repayments are set to resume in October. However, interest will begin to accrue in September, according to the Education Department.
Student loan payments have been halted since the start of the coronavirus pandemic in 2020. In the meantime, other urgent initiatives have been launched, such as ban on deportation. Similarly, judges of the Supreme Court of the Conservative Party ended that ban in November 2021.
President Biden has since addressed the decision in a statement posted on the official White House website Friday afternoon.
The president explained that “this war is not over.” However, he will share more updates during his official press conference taking place on Friday.
