President Joe Biden will announce new measures to protect student loan borrowers on Friday, after the Supreme Court determined he overstepped his authority in promising up to $20,000 in federal debt forgiveness, multiple outlets reported.
Supporters of student debt forgiveness demonstrate outside the US Supreme Court on June 30, 2023, in ... [+]
Biden, calling the decision “unthinkable,” said “the fight isn’t over” in a tweet announcing he will address the nation about the administration’s next steps Friday afternoon.
Biden is expected to denounce the decision and Republicans who backed it, White House sources told multiple outlets.
A White House source told Reuters the Biden Administration has been working on a back-up plan in preparation for the ruling, which they “strongly disagree with.”
"We’ll also be making it crystal clear to borrowers and their families that Republicans are responsible for denying them the relief that President Biden has been fighting to get to them," a White House source told Reuters.
In a 6-3 decision, the Supreme Court struck down Biden’s student loan forgiveness program, ruling in favor of six GOP-led states who argued the president overstepped his authority in promising to forgive the debts. The program, which was suspended and never fully implemented pending the court’s decision, would have forgiven $10,000 in student loan debts for federal borrowers earning less than $125,000 and $20,000 for Pell Grant recipients. The Biden Administration argued it had the authority to execute the program under the HEROES Act, which allows the Secretary of Education to “waive or modify” student financial assistance programs during national emergencies. But the court determined the Act was only intended for “modest adjustments and additions to existing provisions,” Chief Justice John Roberts wrote in his majority opinion.
Student Loan Forgiveness Will Not Happen As Supreme Court Strikes Down Biden Policy (Forbes)
Supreme Court Rejects Student Loan Forgiveness—Here’s What To Know Before Payments Restart This Fall (Forbes)