SCOTUS decision on $400B student debt plan is unfavorable for Biden.

Supreme Court Strikes Down Biden’s $400B Student Debt Cancellation Plan

The Supreme Court delivered a significant blow to the Biden administration on Friday, ruling that it had overstepped its constitutional authority by assuming responsibility for the unpaid student loans of millions of Americans. This decision effectively killed President Joe Biden’s $400 billion plan, leaving borrowers on the hook for their loans.

The 6-3 decision, with conservative justices in the majority, highlighted the need for Congress’ endorsement before undertaking such a costly program. The court rejected arguments that a bipartisan 2003 law, known as the HEROES Act, gave Biden the power he claimed.

Justice Elena Kagan, in a dissent joined by the court’s two other liberals, expressed disappointment in the majority’s decision, stating that it eliminated loan forgiveness for 43 million Americans and disregarded the combined judgment of the Legislative and Executive Branches.

The forgiveness program would have canceled $10,000 in student loan debt for those making less than $125,000 or households with less than $250,000 in income. Pell Grant recipients, who typically demonstrate more financial need, would have had an additional $10,000 in debt forgiven. The administration estimated that 43 million people would have been eligible for relief, with a total cost of $400 billion over 30 years.

Repayments are now expected to resume by late summer, following a schedule initially set by the administration and included in the agreement to raise the debt ceiling. Loan payments have been on hold since the start of the coronavirus pandemic more than three years ago.

In a 6-3 opinion authored by John Roberts, SCOTUS has nuked Biden’s unconstitutional college debt cancellation scheme. https://t.co/BUYZidEpQD pic.twitter.com/iDgK0SJkrQ

— Sean Davis (@seanmdav) June 30, 2023

BREAKING: Supreme Court strikes down Biden’s unlawful student loan debt forgiveness scam.

I’m proud to have brought this case as Missouri’s Attorney General and save taxpayers a half trillion dollars.

— Eric Schmitt (@Eric_Schmitt) June 30, 2023

The Western Journal has reviewed this Associated Press story and may have altered it prior to publication to ensure that it meets our editorial standards.

The post SCOTUS Rules on $400B Student Debt Cancellation Plan, It’s Bad News for Biden appeared first on The Western Journal.

*As an Amazon Associate I earn from qualifying purchases