Topline
President Joe Biden will announce new measures to protect student loan borrowers on Friday, after the Supreme Court determined he overstepped his authority in promising up to $20,000 in federal debt forgiveness, multiple outlets reported.
Supporters of student debt forgiveness demonstrate outside the US Supreme Court on June 30, 2023, in … [+]
Key Facts
Biden, calling the decision “unthinkable,” said “the fight isn’t over” in a tweet announcing he will address the nation about the administration’s next steps Friday afternoon.
Elaborating on his disappointment in a White House statement, Biden accused Republicans who backed the Supreme Court decision of “hypocrisy” for supporting pandemic-related loans to businesses, “but when it came to providing relief to millions of hard-working Americans, they did everything in their power to stop it,” he said, calling the ruling “plain wrong.”
A White House source told Reuters the Biden Administration has been working on a back-up plan in preparation for the ruling.
Crucial Quote
“My Administration’s student debt relief plan would have been the lifeline tens of millions of hardworking Americans needed as they try to recover from a once-in-a-century pandemic,” Biden said in the statement, adding, “I will stop at nothing to find other ways to deliver relief to hard-working middle-class families.”
Key Background
In a 6-3 decision, the Supreme Court struck down Biden’s student loan forgiveness program, ruling in favor of six GOP-led states who argued the president overstepped his authority in promising to forgive the debts. The program, which was suspended and never fully implemented pending the court’s decision, would have forgiven $10,000 in student loan debts for federal borrowers earning less than $125,000 and $20,000 for Pell Grant recipients. The Biden Administration argued it had the authority to execute the program under the HEROES Act, which allows the Secretary of Education to “waive or modify” student financial assistance programs during national emergencies. But the court determined the Act was only intended for “modest adjustments and additions to existing provisions,” Chief Justice John Roberts wrote in his majority opinion.
Further Reading
Student Loan Forgiveness Will Not Happen As Supreme Court Strikes Down Biden Policy (Forbes)
Supreme Court Rejects Student Loan Forgiveness—Here’s What To Know Before Payments Restart This Fall (Forbes)
Source: https://www.forbes.com/sites/saradorn/2023/06/30/biden-student-loan-fight-isnt-over-new-protections-expected-after-supreme-court-overturns-forgiveness-plan/