Biden debt cancellation plan ruled unconstitutional

The U.S. Supreme Court today ruled the Biden administration’s plan to forgive hundreds of billions in student loans is unconstitutional. The court ruled 6-3 against the plan in two cases, Board of Education v. Brown and Biden v. Nebraska. Last year, the Biden administration promised to forgive up to $10,000 in loans for students with annual incomes under $125,000 and $20,000 in loans for students with Pell Grants. Biden cited his authority to forgive debt under the 2003 HEROES Act, which gave the secretary of education the power to “waive or modify” financial programs connected to war or national emergencies.

Is student loan forgiveness dead? Not exactly. The rulings establish that only Congress can forgive student loans, not the secretary of education or the president. Chief Justice John Roberts clarified in the Biden v. Nebraska opinion that the decision was not about the constitutionality of forgiving student debt but rather “who has the authority to do it.” Former Rep. Al Lawson, D-Fla., submitted a bill to forgive student loans in low-income communities back in 2021. That measure is still awaiting a hearing in two House committees.

Dig deeper: Read Bekah McCallum’s report on how American students amassed $1.6 trillion in loan debts.