The U.S. Supreme Court has struck down President Biden’s plan for federal student loan forgiveness.
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The SCOTUS Decision!
In a 6-3 decision, the highest court in the land struck down and ruled against the Biden administration.
The court claims the administration overstepped its authority in trying to cancel or reduce student loan debt, effectively killing the $400 billion plan.
The court held that the administration needs Congress’ endorsement before undertaking so costly a program. The majority rejected arguments that a bipartisan 2003 law dealing with student loans, known as the HEROES Act, gave Biden the power he claimed.
Justice Elena Kagan wrote in a dissent, joined by the court’s two other liberals, that the majority of the court “overrides the combined judgment of the Legislative and Executive Branches, with the consequence of eliminating loan forgiveness for 43 million Americans.”
Millions of Americans are expected to resume payments by late summer.
what was Biden’s student loan forgiveness plan?
President Biden’s student forgiveness plan was aimed at providing relief to millions of Americans who are struggling with student debt.
The plan proposed to eliminate up to $20,000 in debt for students who attended public colleges and universities and earn less than $125,000 per year. This move was expected to reduce the economic burden of student debt and help those who have been struggling to pay off their loans.
The plan also includes provisions to help those who have already paid off their loans. It proposes to provide $10,000 in relief to borrowers who have already paid off their loans, which would help them to recover some of the money they have already spent.
Pell Grant recipients, who typically demonstrate more financial need, would have had an additional $10,000 in debt forgiven.
The plan was expected to benefit a huge number of Americans, as student debt has become a major issue in the country. According to recent data, more than 44 million Americans have student debt, with the total amount owed exceeding $1.7 trillion.
Critics of the plan argue that it is too expensive and will benefit mainly those who are already financially stable. However, supporters of the plan argue that it will provide much-needed relief to millions of Americans and help to stimulate the economy by freeing up money that would otherwise be used to pay off debt.
The white house had said twenty-six million people had applied for relief and 43 million would have been eligible, the administration said. The cost was estimated at $400 billion over 30 years.
Overall, Biden’s student forgiveness plan was a major step towards reducing the economic burden of student debt and providing relief to those who have been struggling to pay off their loans. If it would have passed, it would’ve provided much-needed relief to millions of Americans and help to stimulate the economy.
The student forgiveness plan was one thing I actually applauded the Biden administration for coming up with considering the fact that this inflation Is at an all time high right now, as it seems purposely done.
I’m glad whenever someone in Washington puts forth effort to show me where my money’s going, and that’s going to be beneficial for me.
I believe that all education should be free for everyone, instead of paying for meaningless wars for the military industrial complex, and funding wars between other nations or simply giving funds to Ukraine.