Senate rejects Biden’s student loan cancellation plan, leading to potential veto.

The U.S. Senate has made a bold move by voting to overturn President Joe Biden’s student debt transfer program on June 1. This decision rebukes his efforts to bypass Congress and cancel the debt of certain student loan recipients.

The joint resolution of disapproval was passed in a 52-46 vote, with the help of Sens. Kyrsten Sinema (I-Ariz.), Jon Tester (D-Mont.), and Joe Manchin (D-W.Va.).

“Today, I voted to repeal the Biden Administration’s student loan cancellation proposal because we simply cannot afford to add another $400 billion to the national debt,” Manchin said in a statement, citing a Congressional Budget Office estimate.

“There are already more than 50 existing student loan repayment and forgiveness programs aimed at attracting individuals to vital service jobs, such as teachers, health care workers, and public servants,” he noted. “This Biden proposal undermines these programs and forces hard-working taxpayers who already paid off their loans or did not go to college to shoulder the cost. Instead, we should be focusing on bipartisan student debt reforms that reduce the cost of higher education and help all Americans.”

The Program

Biden’s program initially sought to cancel up to $20,000 in federal student loan debt for roughly 40 million borrowers. It also aimed to extend a national pause on the collection of student loan payments and interest.

However, the plan has been challenged in court, and in November, the Biden administration announced that the payment freeze would not be extended again.

In the coming weeks, the Supreme Court will rule on two challenges relating to the debt relief plan. If by June 30, the litigation is not resolved, payments will resume 60 days after June 30. Otherwise, payments will resume 60 days after the court hands down its decision.

Education Secretary Miguel Cardona’s Response

According to Education Secretary Miguel Cardona, the court cases challenging the program are “callous,” “baseless,” and “just plain wrong.”

“I want borrowers to know that the Biden-Harris Administration has their backs and we’re as committed as ever to fighting to deliver essential student debt relief to tens of millions of Americans,” Cardona said in a Nov. 22 statement.

The Supreme Court’s Opinion

In March, Chief Justice John Roberts seemed skeptical that Biden had the authority to implement such a sweeping change without congressional approval.

“We take very seriously the idea of separation of powers and that power should be divided to prevent its abuse, and there are many procedural niceties that have to be followed for the same purpose,” Roberts said during oral arguments in one of the two cases the court is reviewing.

“I think most casual observers would say, if you’re going to give up that much amount of money, if you’re going to affect the obligations of that many Americans on a subject that’s of great controversy, they would think that’s something for Congress to act on. And if Congress hasn’t acted on it, then maybe that’s a good lesson to say, for the President or the administrative bureaucracy, that maybe that’s not something they should undertake on their own.”

But regardless of how the court rules, the administration’s efforts to provide student debt relief will continue. Stay tuned for updates on this ongoing issue.