{"id":1961469,"date":"2023-06-30T13:23:02","date_gmt":"2023-06-30T17:23:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/supreme-courts-student-loan-ruling-could-save-us-more-than-300-billion\/"},"modified":"2023-06-30T13:24:47","modified_gmt":"2023-06-30T17:24:47","slug":"supreme-courts-student-loan-ruling-could-save-us-more-than-300-billion","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/supreme-courts-student-loan-ruling-could-save-us-more-than-300-billion\/","title":{"rendered":"Supreme Court&#8217;s Student Loan Ruling: Potential $300B+ Savings for US"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsupreme-courts-student-loan-ruling-could-save-us-more-than-300-billion%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1961469&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div>\n<h2>The Supreme Court&#8217;s Decision on Student Debt Relief<\/h2>\n<p>The U.S. Supreme Court&#8217;s recent decision to strike down President Joe Biden&#8217;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nyc-mayor-adams-announces-student-debt-relief-program-for-mental-health-professionals\/\" title=\"NYC Mayor Adams announces <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/aoc-rages-at-biden-its-time-to-take-off-the-gloves-and-govern\/\" title=\"AOC Rages At Biden: \u2018It\u2019s Time To Take Off The Gloves And Govern\u2019\">student debt relief<\/a> program for mental health professionals&#8221;>student <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/another-judge-temporarily-blocks-bidens-debt-relief-program-exclusively-for-farmers-of-color\/\" title=\"Another Judge Temporarily Blocks Biden\u2019s Debt Relief Program Exclusively For Farmers Of Color\">debt relief program<\/a><\/a> has significant implications. Not only does it mark a major reduction in this year&#8217;s deficit, but it also claws back over $300 billion in costs associated with the program that were recognized last year.<\/p>\n<blockquote>\n<p>&#8220;It&#8217;s deficit reduction relative to a deficit increase that never really went into effect,&#8221; said Marc Goldwein, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cdc-director-admits-its-not-just-science-that-affects-our-guidance-on-opening-schools\/\" title=\"CDC Director Admits: It\u2019s Not Just Science That Affects Our Guidance On Opening Schools\">senior policy director<\/a> for the Committee for a Responsible Federal Budget (CRFB).<\/p>\n<\/blockquote>\n<h3>A Constitutional Challenge<\/h3>\n<p>The court ruled 6-3 on Friday that Biden&#8217;s unilateral decision to offer up to $10,000 to $20,000 in one-time student debt forgiveness had circumvented Congress&#8217; constitutional right to make laws on spending. This decision came after legal challenges that had blocked the debt relief program.<\/p>\n<h3>The Cost of Debt Relief<\/h3>\n<p>The Department of Education estimated that the debt relief would cost taxpayers about $30 billion annually over the next decade, totaling around $305 billion. However, the Supreme Court&#8217;s ruling means that a significant portion of these costs will be reversed.<\/p>\n<ul>\n<li>The net present value of the loan forgiveness was estimated at $379 billion over a decade.<\/li>\n<li>The U.S. Treasury took a $430 billion charge against the fiscal 2022 budget results to cover these costs.<\/li>\n<li>Without the advance recognition, the deficit would have fallen below $1 trillion.<\/li>\n<\/ul>\n<h3>Implications for the Deficit<\/h3>\n<p>The reversal of more than $300 billion in costs will make it appear that this year&#8217;s fiscal deficit fell slightly from 2022. However, the Congressional Budget Office is still forecasting an increased deficit of $1.539 trillion this year due to falling revenues and higher spending and healthcare costs.<\/p>\n<h3>Impact on Borrowers<\/h3>\n<p>The Supreme Court ruling will have minimal cash flow impact, adding back about $2 billion in receipts per month that would have been lost under the forgiveness plan. Additionally, the extension of the general student loan repayment moratorium by the Biden administration will provide relief for borrowers.<\/p>\n<ul>\n<li>Many borrowers will benefit from the more <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/supreme-courts-student-loan-ruling-could-save-us-more-than-300-billion\/\" title=\"Supreme Court's Student Loan Ruling: Potential 0B+ Savings for US\">generous income-driven repayment scheme<\/a>.<\/li>\n<li>The general student loan repayment moratorium will end in October, creating new challenges for the U.S. economy.<\/li>\n<\/ul>\n<p>(Reporting by David Lawder; Editing by Andrea Ricci)<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>$50,000 in student debt relief was unconstitutional. This ruling will reverse the recognition of over $300 billion in program costs, providing a significant reduction in this year&#8217;s deficit. The Supreme Court&#8217;s 6-3 decision deemed President Biden&#8217;s unilateral action as unconstitutional.<\/p>\n","protected":false},"author":66,"featured_media":1961470,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[544],"tags":[],"class_list":["post-1961469","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-free-beacon"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1961469","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1961469"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1961469\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1961470"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1961469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1961469"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1961469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}