The justices voted 6-3 against Biden, supporting the six conservative-leaning states that objected to the student credit move. The court’s decision is a political setback for the Democratic president and a disappointment for the 26 million American borrowers who applied for relief in August 2022 after Biden’s announcement.
Chief Justice John Roberts also rejected the Biden administration’s argument that the debt relief program was merely a “modification” of an existing program, noting that such a broad measure would require clear congressional approval. The court’s decision cited so-called “key questions,” a judicial approach that gives judges broad discretion to overrule executive agency actions of “enormous economic and political significance” unless Congress expressly authorizes them in law. A White House source, speaking on condition of anonymity, said Biden plans to announce new measures to protect student loan borrowers in the wake of the ruling.
“While we strongly disagree with the court, we are prepared for that scenario,” the source said, noting that Biden will have more to say on the matter later on Friday. “The president will make it clear that he is not done fighting,” the source added.
Under the plan, the U.S. government would have withdrawn up to $10,000 in federal student debt for Americans earning less than $125,000 who took out loans to fund college and other post-secondary education, and $20,000 for Pell Grant recipients from low-income families.
The decision comes a day after the Supreme Court effectively banned affirmative action measures long used by US colleges and universities to increase enrollment of black, Hispanic and other underrepresented minority students.
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