The Supreme Court halts President Biden plan to forgive student debts

 The Supreme Court ruled that President Joe Biden cannot forgive $400 billion in student debt. The relief plan, one of the most expensive executive actions in the country's history, had been challenged by six states.

President Biden


The Supreme Court decided on Friday against President Joe Biden's student debt relief plan of more than $400 billion, a decision widely awaited by millions of people, especially for those who will have to resume payments on these loans in August.


What exactly did the Supreme Court decide: That President Joe Biden exceeded his authority by issuing an executive order to forgive part of the student debt and that six states had (as they did) the right to challenge this decree in court.


What did Biden's relief plan include: It was one of the most expensive executive actions in U.S. history, erasing student debt by about $430 billion for about 40 million people.


The plan would have forgiven up to $10,000 of debt on student loans (for college or graduate studies) for people with incomes below $125,000 per year.


For people who received a Pell grant, which is given to low-income families, the relief would have been up to $20,000.


Biden had launched the relief plan in 2022, arguing that a 2003 law known as the HEROES Act gave the Secretary of Education authority to waive or modify student aid in times of war or national emergencies. When Biden signed the executive order, the United States was still in an emergency due to the covid-19 pandemic.


Some context: Legal experts had anticipated this decision since the Supreme Court justices heard arguments from both sides last February.


The highest court has a 6-3 conservative majority and, in previous moments of the Biden administration, had decided on policies of the president with a reluctant look at those far-reaching actions that Congress has not given a clear authorization, according to an analysis by Reuters agency.


During the hearing, Chief Justice John Roberts said that measures that cost a lot of money and generate political controversy should be something "that Congress acts on." "And if it hasn't acted on it, then it would be a good lesson to tell the president or the administrative bureaucracy that maybe it's not something they should take into their own hands," Roberts said.

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