Supreme Court kills Biden's student debt plan in a setback for millions of borrowers

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By a 6-to-3 vote, the Supreme Court ruled that federal law does not authorize the Department of Education to cancel student loan debt under President Biden's forgiveness program.

June 30, 2023

Siding with the states, Justice Amy Coney Barrett said, in her concurring opinion, said the major questions doctrine “reinforces” the majority’s conclusion “but is not necessary to it.” Last August, President Biden told federal student loan borrowers that the U.S. government would cancel up to $20,000 of debt for low income students who had received a Pell Grant to attend college, and up to $10,000 for the vast majority of remaining borrowers. He cited a 2001 law that allows the Secretary of Education “to alleviate the hardship that federal student loan recipients may suffer as a result of national emergencies.

 

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