Biden’s Student Loan Program Invalidated by Supreme Court.

The Supreme Court Blocks Biden’s Student Loan Forgiveness Plan

In a 6-3 decision, the Supreme Court ruled against President Joe Biden’s student loan forgiveness plan, stating that the White House lacked the authority to eliminate debt for over 40 million borrowers.

Chief Justice Roberts Criticizes Biden’s Claim of Authority

In a 6-3 decision authored by Chief Justice John Roberts, the Court criticized the Biden administration’s argument that the Education Department had the authority to forgive loans under the HEROES Act. The act, passed in 2003, was intended to provide debt relief to soldiers in connection with a war or national emergency. The Biden administration argued that the coronavirus pandemic constituted such an emergency.

Roberts wrote that the HEROES Act grants the Education Department the power to “waive or modify” existing provisions, not to rewrite the entire statute. He stated, “Under the Government’s reading of the HEROES Act, the Secretary would enjoy virtually unlimited power to rewrite the Education Act.”

Liberal Justices Dissent

Justices Elena Kagan, Sonia Sotomayor, and Ketanji Brown Jackson dissented in the case. They argued that the Court exceeded its authority by taking up the case and striking down the loan forgiveness plan. Kagan wrote, “The statute provides the Secretary with broad authority to give emergency relief to student-loan borrowers, including by altering usual discharge rules. What the Secretary did fits comfortably within that delegation.”

Other Recent Supreme Court Decisions

The Court recently made several significant decisions, including ruling in favor of a Colorado web designer who refused to design websites for same-sex weddings and overturning decades of affirmative action precedent in cases challenging race-based admissions policies. The Court has been reining in broad executive rulemaking, as seen in its previous decisions curbing the EPA’s use of the Clean Water Act and requiring executive agencies to have clear Congressional authority for major questions of economic and political significance.

The Impact of the Decision

The Biden administration’s plan would have forgiven debt for 40 million borrowers, with different levels of forgiveness based on income. However, the Supreme Court’s decision brings an end to the plan. The decision also requires the Biden administration to end the pandemic-era pause of student loan payments, which must resume on August 29, 2023.

Democrats supported the plan as a way to help the working class, while Republicans argued that it unfairly burdened taxpayers. A study by JPMorgan found that more than half of the relief would have gone to earners making over $76,000 per year, despite the administration’s claim that almost 90% would benefit individuals earning less than $76,000 per year.

This is a breaking story and will be updated with further developments.