2023-06-30 19:08:51
WASHINGTON (AP) — A sharply divided Supreme Court on Friday effectively struck down President Joe Biden’s $400 billion plan to cancel or reduce federal student loan debt for millions of Americans.
“This fight is not over,” reacted the president.
The 6-3 decision, with conservative justices in the majority, signaled that the Biden administration overstepped its authority with the plan, leaving borrowers on the hook for payments that are expected to resume in the fall.
Biden was to announce a new set of measures to protect student loan borrowers later Friday, according to a White House official who was not authorized to speak publicly and who discussed the matter on condition of anonymity. The president said in a statement that the ruling was unfair and accused Republicans of “shocking” hypocrisy on the issue.
The court held that the federal government needed congressional backing before undertaking such an expensive program. Most rejected arguments that a 2003 bipartisan law dealing with national emergencies, known as the HEROES Act, gave Biden the authority he requires.
“Six states sued, arguing that the HEROES Act does not authorize the loan cancellation plan. We agree,” wrote Chief Justice John Roberts.
Dissenting Justice Elena Kagan wrote, along with the other two liberals on the court, that the court majority “overturns the combined judgment of the legislative and executive branches, with the consequence of eliminating loan forgiveness for 43 million Americans.” ”. Kagan read a summary of her dissent in court to emphasize her disagreement.
Roberts, perhaps anticipating a backlash from the citizenry and mindful of the court’s dwindling approval, added an unusual coda to his opinion, warning that dissent from liberals should not be confused with disparagement of the court itself.
”It is important that the public is not fooled either. Any such misperception would be detrimental to this institution and our country,” the president of the Supreme Court wrote.
Loan repayments will resume in October, although interest will begin accruing in September, the Department of Education announced. Payments have been suspended since the start of the coronavirus pandemic more than three years ago.
The forgiveness program would have canceled $10,000 in student loan debt for those earning less than $125,000 or households with less than $250,000 in income. Pell Grant recipients, who typically demonstrate greater financial need, would have had an additional $10,000 in debt forgiven.
Twenty-six million people had applied for help and 43 million would have been eligible, the federal government said. The cost was estimated at 400 billion over 30 years.
Advocacy groups supporting debt cancellation condemned the decision and demanded that Biden find another way to fulfill his debt relief promise.
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Associated Press writers Collin Binkley, Colleen Long and Darlene Superville contributed to this report.
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