President Joe Biden announced new measures to provide student loan relief to Americans and criticized the US Supreme Court for blocking a popular plan to forgive hundreds of billions of dollars in debt.
Biden told reporters that his administration would pursue student loan relief via a different route, the Higher Education Act, due to the court's conservative leanings.
Supreme Court Blocks Biden's Student Loan Forgiveness
The Education Department initiated a "rulemaking" process that is anticipated to last several months. The Supreme Court blocked Biden's proposal to expunge $430 billion in student loan debt in a 6-3 decision Friday morning.
The ruling, which Republicans applauded, threatened to derail a portion of the Democratic president's policy agenda. Per Reuters, Biden stated that his administration would pursue a distinct strategy to reach its objective.
The historic judgment on the final day of the Supreme Court's term comes 24 hours after the justices ruled that colleges could no longer use race as a factor in admissions, a decision that prompted criticism from Vice President Biden.
The proposal would have eliminated $10,000 in student loan debt for borrowers earning less than $125,000 and up to $20,000 for Pell Grant recipients.
However, it was challenged by six Republican states and two borrowers, who argued that Biden should have obtained congressional approval before committing significant taxpayer funds.
Biden Announces 'New Path'
Chief Justice John Roberts concurred, stating in the majority opinion that a move "requires Congress to speak plainly before a Department (of Education) Secretary can unilaterally alter substantial portions of the American economy."
In a statement released hours after the verdict, President Biden described the decision as "disappointing and incorrect" and pledged to fight back.
According to Roberts, the Biden administration cited the HEROES Act as justification for the plan actually providing "no authorization for the Secretary's plan," so there was no explicit congressional authorization.
Due to a COVID-19 pandemic moratorium, millions of Americans have not had to repay their loans for the past three and a half years. October will mark the resumption of payments, and September will mark the recurrence of interest.
Biden's loan forgiveness has been a pillar of his presidency, and the verdict will be a significant setback for an administration that has fought against the accumulating debt.
Friday evening, the president is anticipated to address the nation regarding the verdict. Biden's plan for student loans has been at the center of a legal dispute with six Republican-controlled states and two borrowers for months. Iowa, Arkansas, Kansas, Missouri, Nebraska, and South Carolina argued that he lacked the legal authority to implement the plan without first receiving approval from Congress.
Biden used the post-9/11 HEROES Act of 2003 to justify the program. It stipulates that the Department of Education may forgive student debt in the event of a national emergency. However, the chief justice's majority opinion stated that the HEROES Act was not a valid premise for the plan, according to Daily Mail.
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