The Supreme Court on Friday blocked the Biden administration’s student debt relief plan, stopping more than 40 million borrowers from receiving loan forgiveness and delivering a major defeat to one of the president’s key campaign promises.
The high-stakes decision will limit President Biden’s options to deliver on his commitment to cancel $10,000 of student loans for low- and middle-income borrowers.
“The Secretary asserts that the HEROES Act grants him the authority to cancel $430 billion of student loan principal. It does not,” Chief Justice John Roberts wrote. The court ruled 6-3 along ideological lines.
Biden’s plan would have canceled up to $20,000 in loans for Pell Grant recipients and $10,000 for other borrowers, if the individual’s income is less than $125,000. The income limit was doubled for married couples.
Anticipation had been building that the court’s conservative majority would strike down the plan. During oral arguments in February, several justices expressed doubt about the Education Department’s authority to unilaterally forgive hundreds of billions of dollars in student debt.
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