Supreme Court Blocks Biden's Student Loan Forgiveness

The Supreme Court just delivered bad news to thousands of college grads: They won't be getting a break of up to $20,000 on their student loans after all. In a 6-3 ruling, the court stuck down President Biden's plan to forgive more than $400 billion in student loans, reports the Washington Post and Politico. Most grads would have been eligible for $10,000 in relief, though some who received Pell grants could have gotten $20,000. The court ruled that Biden overstepped his authority in authorizing the relief. The president plans to speak later Friday on a new way to provide relief, per CNN.

The court heard two cases brought against the president's plan: one from six GOP state attorneys general and the other by two students who did not qualify for loan forgiveness, per Politico. Both made the case the Biden exceeded his authority. The relief plan never went through Congress: Instead, Biden said he had the authority to put it in place under a 2003 law known as the HEROES Act that allows the education secretary to change loan rules in a national emergency; the White House argued the pandemic qualified.

"Six States sued, arguing that the HEROES Act does not authorize the loan cancellation plan. We agree," Chief Justice John Roberts wrote in the majority opinion, per the AP. In a dissent joined by the court's two other liberal justices, Justice Elena Kagan wrote that the court majority "overrides the combined judgment of the Legislative and Executive Branches, with the consequence of eliminating loan forgiveness for 43 million Americans." Payments, which have been on hold for three years because of the pandemic, must resume in October. (More US Supreme Court stories.)