Student debt relief advocates demonstrate outside the US Supreme Court on June 30, 2023 in Washington, DC.

Olivier Douliery | AFP | Getty Images

The Supreme Court killed President Joe Biden on Friday student loan forgiveness planand denied tens of millions of Americans the chance to get up to $20,000 of their debt wiped out.

The rulingwho corresponded to expert predictions given the justices’ conservative majority, it’s a huge blow to borrowers who were promised loan forgiveness by the Biden administration last summer.

The 6-3 majority ruled that at least one of the six states that challenged the loan relief program had a proper legal basis, the so-called standingmake it so.

The Supreme Court said the president did not have the authority to order his education secretary to cancel such a large amount of consumer debt without Congressional authorization, and agreed that the program would harm the plaintiffs.

“Can the Secretary use his powers to cancel $430 billion in student loans and completely write off loan balances for 20 million borrowers as the pandemic comes to an end?” wrote Chief Justice John Roberts in the majority opinion for Biden v. Nebraska. . “We can’t believe the answer is yes.

“Absolute betrayal” for borrowers, advocates say

How Student Loan Forgiveness Made it to the Supreme Court

However, the administrative pardon application had been open for less than a month when a flurry of legal challenges forced them to close it. Biden’s plan has now faced at least six lawsuits from Republican-backed states and conservative groups, most of which accuse him of overreaching the executive branch.

Two of those legal challenges made it all the way to the Supreme Court: one filed by six Republican-led states — Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina — and another backed by the Job Creators Network Foundation, a conservative advocacy group.

The judges heard oral arguments about these cases at the end of February.

— CNBC’s Kevin Breuninger contributed to this story.

This is the latest news. Please check for updates.

Source Link