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Supreme Court rules against Biden’s plan to forgive student loans


Royce Hall is pictured. In a 6-3 decision, the United States Supreme Court struck down President Joe Biden and Secretary of Education Miguel Cardona’s plan to forgive student loan debt. (Daily Bruin file photo)


This post was updated July 2 at 7:35 p.m.

The United States Supreme Court barred President Joe Biden’s student loan forgiveness plan Friday morning.

The Court said in a 6-3 decision that Biden does not have the authority to forgive student loan debt. His plan – proposed in partnership with Secretary of Education Miguel Cardona – would have provided debt relief to address financial issues caused by the pandemic.

The plan would have granted up to $10,000 of student loan forgiveness to people filing taxes individually with yearly incomes of less than $125,000, or two people filing taxes jointly with a collective yearly income of less than $250,000. People who have received Pell Grants would have been eligible to receive up to an additional $10,000.

[Related: UCLA community members assert recent student loan forgiveness is a positive start

According to The Washington Post, Biden previously said his administration had the authority to forgive student loan debt under the 2003 Higher Education Relief Opportunities for Students Act, which allows the secretary of education to waive or adjust student financial assistance program requirements, particularly in times of emergency.

The case was brought forth by six Republican-led states – including Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina– as well as another filing from two people in Texas.

In a press release, UC President Michael Drake said the University is disappointed by the decision and invited students and alumni to look at loan repayment options.

“College affordability is among the University’s highest priorities,” Drake said in the press release. “(This ruling) also harms society as a whole: Those with student loans are less likely to earn advanced degrees, purchase a home, start their own business or make other investments that benefit their communities.”


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