Supreme Court Blocks Biden's Student Loan Forgiveness Plan
Court Rules Against Administration's Plan to Forgive Student Debt
Federal Law Does Not Authorize Education Department to Forgive Debt
In a major blow to President Joe Biden's student loan forgiveness plan, the Supreme Court has ruled that the Department of Education does not have the authority to forgive student debt under the Higher Education Relief Opportunities for Students (HEROES) Act.
The HEROES Act was passed in the wake of the 9/11 terrorist attacks to provide relief to borrowers who were affected by national emergencies. The Biden administration argued that the COVID-19 pandemic constituted a national emergency and that the HEROES Act therefore gave the Department of Education the authority to forgive student debt.
However, the Supreme Court disagreed. In a 6-3 ruling, the Court held that the HEROES Act only authorizes the Department of Education to forgive student debt in connection with a war or other military operation. The Court also noted that Congress has the power to forgive student debt, but that it has not done so.
The Supreme Court's ruling is a major setback for the Biden administration's effort to forgive student debt. The administration had estimated that the plan would provide relief to up to 43 million borrowers.
The ruling is also a victory for Republicans, who have opposed the Biden administration's student loan forgiveness plan. Republicans have argued that the plan is unfair to taxpayers who have already paid off their student loans and that it will cost the government billions of dollars.
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