US President Joe Biden faced a major setback on Tuesday as the US Supreme Court rejected his ambitious plan to cancel student debt, amounting to over $400 billion, for millions of Americans burdened with long-standing education loans.
In a significant blow to the administration, the conservative-leaning court voted 6-3 against the debt relief program, asserting that Biden had exceeded his presidential powers by implementing the plan without specific authorization from Congress. The court ruled that Biden's reliance on the 2003 Higher Education Relief Opportunities for Students Act as a justification for the debt cancellation was incorrect.
The legal challenge was led by six Republican-led states, arguing that the 2003 act, originally aimed at aiding former students who served in the military after the September 11, 2001 attacks, did not grant the authority for Biden's sweeping loan forgiveness.
Chief Justice John Roberts, in the majority opinion, emphasized that the crucial issue at hand was not whether the debt relief was warranted but rather who possessed the constitutional authority to enact such measures.
Biden responded to the court's decision through a White House source, expressing strong disagreement and vowing to continue the fight. However, the setback leaves the president with limited options as the court firmly establishes Congress's role in matters of financial significance.
The student loan crisis in the US remains a pressing concern, with nearly 43 million Americans holding a staggering $1.6 trillion in federal student loans. The burden of repayment often stretches over decades, impacting individuals as they build their careers and families.
Biden unveiled his ambitious plan in August 2022, proposing to forgive up to $20,000 in loans per borrower, with the benefit targeting those from low and middle-income groups. The proposal emerged amidst a broader context of relief efforts, following his predecessor Donald Trump's student loan payment freeze during the Covid-19 pandemic.
Despite the president's intent to alleviate the financial strain on borrowers, the court's ruling highlights the need for congressional approval to implement measures of this magnitude. Justice Neil Gorsuch emphasized the significance of Congress's control over the nation's finances and budgetary decisions.
The court's three progressive justices expressed dissenting views, with Justice Elena Kagan contending that the court itself was overstepping its boundaries in this case. She argued that the states challenging Biden's policy lacked standing as they did not demonstrate a personal stake or incurred any direct injury due to the policy.
Justice Kagan further asserted that the 2003 act indeed allowed for the policy's implementation and criticized the court's decision for assuming the role of Congress and the executive branch in formulating national policy on student loan forgiveness.
Despite the setback, the student loan crisis remains an urgent issue, and the court's ruling underscores the importance of congressional involvement in crafting policies with far-reaching financial consequences. As millions of Americans grapple with the weight of education-related debt, attention now turns to lawmakers to address this pressing concern in a manner consistent with constitutional principles.
