In a 6-3 decision, the Supreme Court ruled on June 30, 2023 that President Biden did not have the authority to cancel or reduce student loan debt under the Higher Education Act of 1965. The court's ruling effectively killed the Biden administration's plan to cancel up to $20,000 in federal student loans for 43 million people.
The court's decision was based on the interpretation of the Higher Education Act, which gives the secretary of education the authority to "waive, modify, or defer" student loan payments in certain circumstances. The court ruled that the Biden administration's plan to cancel student loan debt did not fall within the scope of this authority, as it did not involve waiving, modifying, or deferring payments.
The court's decision was a major setback for President Biden and for the millions of Americans who were hoping for student loan forgiveness. It also raises questions about the future of student loan debt relief in the United States.
The Biden administration has said that it is considering other options for student loan relief, such as through legislation or executive action. However, it is unclear whether any of these options will be successful, given the Supreme Court's ruling.
The Supreme Court's decision is a reminder of the challenges of student loan debt in the United States. The student loan debt crisis is a major economic and social issue, with millions of Americans struggling to repay their loans. The Supreme Court's decision makes it even more difficult for borrowers to get relief from their student loan debt.