US: Biden Strongly Disagrees with Supreme Court Ruling on Student Loans

By Staff, Agencies

US President Joe Biden on Friday said he “strongly” disagrees with the Supreme Court's ruling ending his plan to forgive billions of dollars in federal student loans.

In a 6-3 decision, the Supreme Court ruled against the Biden administration and favored six conservative-leaning states that objected Biden's plan to cancel $430 billion in student loan debt – a move that was intended to benefit up to 43 million people and fulfill a campaign promise.

The so-called “Chief Justice” John Roberts, joined by the rest of the court’s conservative members, wrote the ruling over a dissent from the three liberal justices: “From a few narrowly delineated situations specified by Congress, the secretary has expanded forgiveness to nearly every borrower in the country,” he said, referring to the US education secretary.

“While we strongly disagree with the court, we prepared for this scenario,” said the White House official, speaking on condition of anonymity. “The president will make clear he's not done fighting yet, and will announce new actions to protect student loan borrowers,” he added.

The court’s action dealt a political setback for the Democratic president as well as a blow to 26 million US borrowers who applied for relief after Biden announced the plan in August 2022.

Biden’s plan fulfilled his 2020 campaign promise to cancel a portion of $1.6 trillion in federal student loan debt but was criticized by Republicans who called it an overreach of his authority and an unfair benefit to college-educated borrowers while other borrowers received no such relief.

Under the plan, the US government would forgive up to $10,000 in federal student debt for Americans making under $125,000 who obtained loans to pay for college and other post-secondary education.

The ruling came a day after the Supreme Court effectively prohibited affirmative action policies long used by US universities to raise the number of minority students. Biden responded by saying the court was out of touch with the country’s basic values.