Supreme Court strikes down Biden student loan debt forgiveness program
(ABC NEWS)—The Supreme Court on Friday struck down the Biden administration program to forgive student debt for more than 43 million American borrowers at a cost of $400 billion.
The vote was 6-3, with conservative justices in the majority in an opinion written by Chief Justice John Roberts.
Six GOP-led states had challenged the program as executive power overreach. The administration had argued it was supported by emergency powers Congress had granted under COVID relief legislation.
The program would have canceled $10,000 in student debt for all borrowers who made less than $125,000 and up to $20,000 for borrowers who also received Pell grants.
The White House earlier this week continued to decline to say what a “Plan B” would look like should the court strike it down.
Student loan payments are due to restart in October after a three-year pause put in place during the pandemic. Interest on federal student loans will start accruing in September.
This is a developing story. Please check back for updates.
