Biden's Student Loan Forgiveness Plan Struck Down by Supreme Court

Stinging Defeat for Biden Administration

Court Blocks Plan to Forgive Up to $20,000 in Debt

WASHINGTON - In a major setback for the Biden administration, the Supreme Court on Friday struck down President Joe Biden's plan to discharge federal student loan debt for tens of millions of Americans. The court's decision marks a stinging defeat for the administration and its efforts to provide relief to borrowers struggling with student loan payments.

The court, in a 6-3 ruling, held that the administration had exceeded its authority in implementing the loan forgiveness program. The justices argued that Congress had not explicitly authorized the executive branch to cancel student debt on such a broad scale.

The ruling is a major blow to the Biden administration, which had hoped to provide relief to millions of borrowers who have been struggling to repay their student loans. The program would have forgiven up to $20,000 in debt for individuals with federal student loans and up to $40,000 for those who received Pell Grants.

The decision is also a victory for conservative groups that had challenged the administration's plan. These groups argued that the program was unlawful and would have cost taxpayers billions of dollars.