On Friday (June 30), the Supreme Court rejected the administration’s offer to cancel up to $20,000 in student loan debt for millions of students who are suffering from mounting accounts, handing President Joe Biden a bitter setback.
According to reports, Chief Justice John Roberts wrote for the conservative supermajority in the 6-3 ruling. It will instantly turn into a crucial topic in the 2024 presidential election as Biden tries to inspire liberals by stating that the conservative court prevented him from providing debt relief to voters.
Conservatives and Republican-led states are opposing the initiative, claiming that it amounts to an illegal attempt to cancel an estimated $430 billion in federal student loan debt while disguising it as an epidemic. The Biden administration and the Secretary of Education, according to Roberts, revised the law.
With regard to the debtors targeted by Biden’s program, the court’s ruling indicates that they will not be helped. Starting in October, responsibilities for monthly payments that were suspended during the Covid-19 epidemic will resume. Before a Texas lower court issued a nationwide directive in November, the White House claimed to have received 26 million applications for the program, of which 16 million had been granted relief. Borrowers who earned less than $125,000 annually (or $250,000 for households) in 2020 or 2021 would have received assistance under the plan. He made the case that the relief plan was essential to prevent a spike in delays or late payments for COVID victims who have remaining loans.