Supreme Court Rejects Biden’s One-Time Debt Relief Plan

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.

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