Supreme Court Strikes Down Student Loan Forgiveness
In a significant blow to borrowers seeking relief from their student loan debt, the Supreme Court has recently struck down President Biden’s proposal to forgive up to $20,000 per borrower. The court’s 6-3 decision, released today, Friday, June 30, ruled that the president lacked the authority to implement the plan under the Higher Education Act of 1965. This ruling not only dashes the hopes of many borrowers but also casts uncertainty over the future of student loan forgiveness in the United States. The Supreme Court’s decision is a major setback for individuals burdened by student loan debt. President Biden’s proposal aimed to alleviate the financial strain faced by millions of borrowers, offering them a potential path towards a fresh start. However, the court’s ruling challenges the legality of the plan, asserting that the president exceeded his authority under the Higher Education Act.
The Supreme Court’s decision raises pertinent questions about the future of student loan forgiveness in the United States. With this setback, it becomes imperative to explore alternative avenues for addressing the student debt crisis. While President Biden’s plan faced legal challenges, the urgency to find viable solutions to ease the burden on borrowers remains.
The Legal Challenge
The legal challenge to Biden’s student loan forgiveness plan was brought by two groups of borrowers: two individual borrowers and six Republican attorneys general. The challengers argued that the president did not have the authority to forgive student loan debt under the Higher Education Act of 1965.
The Higher Education Act gives the secretary of education the authority to “waive, modify, or cancel” student loan debt. However, the challengers argued that this authority is limited to situations where the borrower is unable to repay their loans. They argued that the president’s plan to forgive student loan debt for all borrowers, regardless of their ability to repay, was not authorized by the Higher Education Act.
The Supreme Court’s Decision
The Supreme Court agreed with the challengers. In a 6-3 decision, the court found that the president did not have the authority to forgive student loan debt under the Higher Education Act. The court’s decision was based on a narrow interpretation of the law. The court found that the word “waive” in the Higher Education Act refers to a temporary suspension of payments, not a permanent forgiveness of debt.
The Impact of the Decision
The Supreme Court’s decision is a major setback for borrowers who were hoping for relief from their student loan debt. It also raises questions about the future of student loan forgiveness in the United States.
The decision does not mean that student loan forgiveness is impossible. Congress could pass legislation that would authorize the president to forgive student loan debt. However, it is unlikely that Congress will pass such legislation, as it is a politically contentious issue.
The decision also leaves open the possibility that the president could issue an executive order that would forgive student loan debt. However, it is unclear whether such an executive order would be upheld by the courts.
The Future of Student Loan Forgiveness
The Supreme Court’s decision is a major setback for student loan forgiveness. However, it is not the end of the road. There are still ways to achieve student loan forgiveness, but they will be more difficult now.
If you are a borrower who is struggling with student loan debt, there are a few things you can do. First, you can contact your loan servicer and see if you qualify for any repayment assistance programs. Second, you can contact your elected officials and urge them to support student loan forgiveness legislation. Finally, you can stay informed about the latest developments in student loan forgiveness and advocate for your rights.
Conclusion
Please share this article with those that you know that are affected by this ruling. With payments for loans resuming in a few months, there will be many people that will have to figure out their budgets in the coming months.
