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Supreme Court rejects Biden student loan forgiveness plan [washingtonpost.com]

 

Demonstrators outside the Supreme Court on Friday. The court ruled against the Biden administration’s plan for student loan forgiveness, saying officials went outside the bounds of their authority in creating it. (Tom Brenner for The Washington Post)

By Robert Barnes and Danielle Douglas-Gabriel, The Washington Post, June 30, 2023

President Biden does not have authority to implement his roughly $400 billion program to forgive student loan debt, the Supreme Court ruled Friday,issuing another blow to the administration’s bold claims of power in the final decision of the court’s term.

By afternoon, Biden announced a “new path” for loan forgiveness and started a federal rulemaking process, which could take months. He also announced plans for a temporary, 12-month “ramp” repayment program for student loan borrowers. Under this program, the Education Department will not refer borrowers who miss loan payments to credit agencies for 12 months, Biden said, “to give them a chance to get back up and running.”

I’m never going to stop fighting for you,” Biden said in remarks at the White House. “We’ll use every tool at our disposal to get you the student debt relief you need and reach your dreams. It’s good for the economy, it’s good for the country.”

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