Student debt forgiveness advocates demonstrate outside the U.S. Supreme Court on June 30, 2023, in Washington, DC.
Olivier Douliery | AFP | beautiful pictures
The Supreme Court on Friday rejected President Joe Biden’s plan to forgive student debt, denying tens of millions of Americans the opportunity to write off the debt of up to $20,000.
The ruling, in line with expert predictions based on a conservative majority of the judges, is a blow to borrowers who were promised debt forgiveness by the Biden administration last summer. Financial experts also expressed concern about what could happen next for borrowers.
The U.S. Department of Education recently warned that pushing people to repay loans after a pause of more than three years and a pandemic would have disrupted the financial security of many households without loan cancellations. of Biden could cause a historic increase in delinquencies and defaults.
Consumer advocates criticized the ruling and accused the court of bias.
“Today’s decision is a complete betrayal of the 40 million student loan borrowers who are counting on a fair court to decide their financial future based on established rules,” the statement said. father said. Persis Yudeputy executive director at the Student Borrower Protection Center, an advocacy group.
Still, the decision is a major victory for plaintiffs, who have been working to stave off pardons and are worried about law enforcement interfering in the lending sector. At an estimated cost of $400 billion, Biden’s policy would be one of the most costly executive actions in US history.
The judges heard oral argument at the end of February.
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