Biden’s Student Loan Forgiveness Plan Denied
Following the Supreme Court’s landmark decision to eliminate race and ethnicity as viable markers for US college admissions, another decision was made on Friday that may shock several. After months of litigation, the Supreme Court has found justifiable grounds to block President Biden’s student loan forgiveness plan. Although the action was forecasted, it untimely follows the previous college admissions decision, resulting in the end of two heavily debated cases in the college sphere. With a conservative majority holding the high court, the ruling was cast 6-3, ultimately ending roughly a year-long battle to pass the student loans forgiveness plan. With six different states suing against the program, the Supreme Court found at least one had proper standing, claiming the executive branch did not have the authority to enact such a policy without Congress’ approval.
The blocking of the Biden-led program may have the potential to become an obstacle for his reelection next year, and he has already proposed a new package through the Higher Education Act. The previous plan was slated to aid over 40 million student loan borrowers, canceling roughly $430 billion worth of debt. Up to $20,000 in debt would have been erased for each individual borrower, with the total US student loan debt reaching roughly $1.8 trillion. With nearly 20% of student loan borrowers at risk for delinquencies or default, the persisting issue is certainly of great magnitude, but the high court believes Congress will need to confirm actions prior to any relief that may be bestowed.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.