WASHINGTON: In a major blow to President Joe Biden, the US Supreme Court has overturned his groundbreaking program to cancel the student debt of millions of Americans. The court ruled that Biden had exceeded his authority by canceling more than $400 billion in student debt, stating that he should have sought specific authorization from Congress for the program. The ruling, with a six to three majority, was delivered by the conservative-dominated court.
The court concluded that Biden’s reliance on the 2003 law, the Higher Education Relief Opportunities for Students Act, to justify the debt relief plan was erroneous. The six Republican-led states that brought the lawsuit argued that the 2003 act, which aimed to aid former students who joined the military after the September 11, 2001 attacks, did not authorize the broad loan cancellation proposed by Biden.
“The question here is not whether something should be done; it is who has the authority to do it,” wrote Chief Justice John Roberts in the majority opinion, concurring with the ruling. The court asserted that Congress, not the president, possesses the power to make decisions regarding such a significant debt cancellation plan. Justice Neil Gorsuch highlighted the importance of Congress’s control over the nation’s finances, stating, “Among Congress’s most important authorities is its control of the purse.”
Biden Administration Disagrees with Supreme Court’s Decision
President Biden’s administration expressed strong disagreement with the Supreme Court’s decision. A White House source, speaking on condition of anonymity, stated that the president would assert his determination to continue the fight against student debt cancellation setbacks.
Approximately 43 million Americans collectively hold $1.6 trillion in federal student loans, burdening them for years after completing their studies. In August 2022, Biden had unveiled the debt relief plan, aiming to forgive up to $20,000 per borrower, limited to individuals from low or middle-income groups. The plan followed a student loan payment freeze implemented by former President Donald Trump during the Covid-19 pandemic.
However, the Supreme Court deemed that Biden lacked the unilateral power to erase such a substantial amount of debt without congressional approval. The court’s three progressive justices dissented in the decision. Justice Elena Kagan argued that the court itself had exceeded its authority by entertaining the case, asserting that the states challenging Biden’s policy lacked the necessary standing to do so. She also contended that the 2003 act did allow for the policy and criticized the court for intervening in matters of national policy.
