Supreme Court Strikes Down Biden Student-Loan Forgiveness Program
Millions of Americans Will Not Receive Debt Relief
Court Ruled Administration Overstepped its Authority
The Supreme Court ruled on Friday, June 30, 2023, that the Biden administration's plan to forgive student loans for millions of Americans was unlawful. The ruling, made by a 6-3 vote, strikes down a key part of the administration's economic agenda.
The plan would have forgiven up to $20,000 in student debt for individuals earning less than $125,000 a year and couples earning less than $250,000. It was estimated to cost the government $400 billion.
The court ruled that the administration did not have the authority to implement the plan without congressional approval. The majority opinion, written by Justice John Roberts, said that the administration had "acted without clear congressional authorization" and had "exceeded its statutory authority."
In a dissenting opinion, Justice Sonia Sotomayor said the majority's decision "leaves millions of Americans in financial distress." She argued that the administration had acted within its authority and that the plan was "a reasonable way to address the student debt crisis."
The ruling is a major setback for the Biden administration and for millions of Americans who are struggling with student loan debt. It remains to be seen whether the administration will try to pursue other options for providing student loan relief.
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