On June 30, the U.S. Supreme Court rejected the Biden administration's one-time debt relief plan for student loans held by more than 40 million Americans. In a 6-3 decision, Chief Justice John Roberts stated that while the education secretary has some power to modify student aid programs, the approved plan exceeded the authority granted by Congress. The case sheds light on the differing views of executive power between the White House and the Supreme Court, with the latter limiting agency authority and blocking administration initiatives. President Biden initially sought legislative action to erase up to $20,000 in student debt per borrower but later relied on emergency powers to forgive certain borrowers' debt during the COVID-19 pandemic. The court's decision has financial implications and raises questions about fairness between borrowers and non-borrowers.
This decision, combined with the end of the three-and-a-half-year payment pause, has millions of borrowers apprehensive about how they will make ends meet. Student loan borrowers face numerous challenges.
NOW is the time to add a student loan paydown benefit, one-to-one personalized counseling, and online financial education. By doing so, you can make a much-needed difference in your employees’ or alums’ lives.
We are here to help. Our nearly 60 years of partnerships with higher education institutions, employers, and professional trade associations have helped millions overcome student loan debt challenges. We have what’s needed to make the difficult road ahead easier.
Employers can learn more about our solutions to help make employees’ lives easier.
Schools can learn more about our solutions to help make alums’ lives easier.
