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Supreme Court rejects Biden’s plan to wipe away $400 billion in student loan debt

today06/30/2023 21

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WASHINGTON (AP) — A sharply divided Supreme Court has ruled that the Biden administration overstepped its authority in trying to cancel or reduce student loan debts for millions of Americans.

Conservative justices were in the majority in Friday’s 6-3 decision that effectively killed the $400 billion plan that President Joe Biden announced last year. Borrowers are on the hook for repayments that are supposed to resume in the fall.

The court held that the administration needs Congress’ endorsement before undertaking so costly a program and rejected arguments that a bipartisan 2003 law dealing with student loans provided the authority Biden claimed.

Source: AP – All contents copyright 2023 Associated Press.  All rights reserved.

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