In a significant setback for the Biden administration, the U.S. Supreme Court has rejected a plan to cancel $430 billion in student loan debt. The decision, which was announced today, deals a significant blow to an initiative that was a cornerstone of President Biden's campaign promises.
The plan aimed at alleviating the financial burden of millions of American students and graduates by cancelling between $10,000 to $20,000 of their student loan debt. However, the Supreme Court ruled that President Biden lacked the authority to implement such a program.
The judgement stated, "The Secretary asserts that the HEROES Act grants him the authority to cancel $430 billion of student loan principal. It does not." This ruling effectively blocks the Biden administration from providing student debt relief to over 40 million borrowers.
The decision has been met with disappointment by many who saw the plan as a much-needed relief measure in the face of escalating student debt crisis. Critics have argued that the court's decision is a step backward in addressing the growing issue of student loan debt, which currently stands at around $1.7 trillion nationally.
On the other hand, opponents of the plan have hailed the court's decision as a victory for fiscal responsibility, arguing that the blanket forgiveness of student loans could set a dangerous precedent for future spending.