Supreme Court Strikes Down Biden Student Loan Forgiveness

Photo credit: Image by QuinceCreative from Pixabay

News just came out this morning that the US Supreme Court struck down the Biden Administration’s Student Loan Forgiveness Plan, 6–3. The decision prevents more than 40 million borrowers from finding relief of up to $20,000 for some borrowers in their federal student loan debt balance.

Even though a majority of Americans favored the plan (63% vs. 36% who opposed), according to a Marquette Law School poll, Chief Justice John Roberts penned that Congress had not authorized the executive branch to forgive the student loan debts that are in excess of billions of dollars.

Roberts wrote, “The Secretary asserts that the HEROES Act grants him the authority to cancel $430 billion of student loan principal. It does not. We hold today that the Act allows the Secretary to ‘waive or modify’ existing statutory or regulatory provisions applicable to financial assistance programs under the Education Act, not to rewrite that statute from the ground up.”

The Biden Administration forgiveness plan would have forgiven $10,000 for borrowers with incomes below $125,000 ($250,000 for couples). $20,000 would have been forgiven for Pell Grant recipients.

What to do now?

It’s even more imperative to be in control of your finances to make way for the federal student loan payments that will resume in a few months.

Check out my previous article here for practical tips on what to do from now until payments resume:

Student Loan Payment Pause Ends, Payments Start in October

Photo credit: Image owned by this article’s author James Kim

Now it’s even more vital to go to alumsum.com and create an AlumSum account if you have multiple loans across multiple loan servicers.

AlumSum is a student loan management platform that helps you stay on track of all your student loans in one place.

Our easy-to-understand dashboard helps you to make wiser financial decisions to get out of student debt faster while saving money on interest.

AlumSum is on a mission to be the best student loan management tool you need to stay on top of all your student loans and save you time and money on paying them down. We recently launched our beta platform. Sign up for a new customer account here!

If you’re interested in learning about how to get out of student loan debt faster, please go follow my own new Medium publication that specifically targets this topic: Tackling Student Loan Debt.