Supreme Court Rejects Biden's Student Loan Forgiveness Plan
Court Invalidates Program that Wiped Out $500 Billion in Debt
Millions of Borrowers Left Disappointed as Plan Struck Down
WASHINGTON - In a major setback for the Biden administration, the Supreme Court has struck down the president's plan to discharge federal student loan debt for tens of millions of Americans.
The court ruled 6-3 Friday that the program, which would have eliminated nearly half a trillion dollars in debt, exceeded the president's authority.
The ruling is a significant blow to millions of Americans who had been hoping to see their student loan debt wiped out. The program, which was announced last August, would have forgiven up to $20,000 in debt for borrowers who met certain income requirements.
The Supreme Court's decision comes as the Biden administration is facing increasing pressure to address the issue of student loan debt. The total amount of student loan debt in the United States has now surpassed $1.7 trillion, making it the second-largest type of consumer debt in the country, after mortgages.
The Biden administration is expected to appeal the Supreme Court's ruling. However, it is unclear whether the court will reconsider its decision.
In the meantime, millions of Americans will continue to struggle with the burden of student loan debt. The average monthly payment on student loans is now over $400, and many borrowers are struggling to keep up.
The Supreme Court's decision is a reminder that the issue of student loan debt is a complex one with no easy solutions. The Biden administration will need to continue to work with Congress to find a solution that addresses the needs of borrowers.
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