Supreme Court strikes down Bidenâs student loan forgiveness plan

Update:

The Supreme Court struck down President Joe Biden’s plan to dismiss billions of student loans on Friday, striking a blow to a key White House initiative.

The justices ruled 6-3 that the program was an unlawful exercise of presidential power since it had not been approved by Congress.

Earlier:

The Supreme Court is expected to announce its ruling today on President Joe Biden’s sweeping plan to forgive student loans for millions of borrowers.

The student loan cases, along with a case involving LGBTQ protections, are the final cases before the Court before it begins its summer recess, Politico reported. At the close of Thursday’s session, Chief Justice John Roberts said Friday will be the final day for the conservative-majority court to issue opinions on this term’s cases.

Biden’s plan would cancel up to $10,000 in student loan debt for those making less than $125,000 or households earning less than $250,000. People who received Pell Grants in college would be eligible for up to $20,000 in loan forgiveness. The plan would cost some $400 billion.

Two cases before the court – Biden v. Nebraska and the Department of Education v. Brown – challenge Biden’s authority to dismiss federal student loans.

No matter the SCOTUS ruling, millions of borrowers will soon have to begin repaying loans due to the end of a payment pause first put in place at the start of the COVID pandemic.

Starting Sept. 1, interest on student loans will resume. Payments will follow in October, though the exact date will depend on the servicing company. The Department of Education is expected to give more details in the next few months on the specifics of the restart.

The Biden administration previously said the student loan payment pause would be lifted the SCOTUS ruling or two months after June 30. That scheduled was later tweaked to the September/October dates.