Supreme Court Strikes Down Biden Student-Loan Forgiveness Program
Millions of federal borrowers will not receive debt relief under Biden's plan
The court ruled that the administration overstepped its authority in implementing the program
On Friday, June 30, 2023, the Supreme Court ruled that the Biden administration had overstepped its authority with its plan to wipe out more than $400 billion in student loan debt. The decision is a major blow to the administration, which had argued that the program was necessary to provide relief to struggling borrowers.
The court's ruling was based on the argument that the administration did not have the authority to implement the program without congressional approval. The court also found that the program was arbitrary and capricious, and that it would have a negative impact on the economy.
The decision is a major setback for the Biden administration's efforts to address the student loan crisis. The administration had estimated that the program would provide relief to more than 40 million borrowers, and it had already begun to process applications.
The Supreme Court's decision is likely to have a significant impact on the future of student loan forgiveness. The ruling makes it clear that the administration does not have the authority to implement such a program without congressional approval.
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