Supreme Court Strikes Down Biden’s Student Debt Relief Plan – rank7.in

Summary of the Issue:

The Supreme Court recently ruled that President Joe Biden’s plan to cancel up to $50,000 of student loan debt for qualifying borrowers was unconstitutional. The ruling came after a lawsuit was filed by the Republican attorneys general of 18 states and the governor of Montana.

The Administration had argued that to alleviate some of the economic hardship caused by the pandemic, it needed to use its power under the Higher Education Act of 1965 to allow the Department of Education to forgive up to $50,000 in student loan debt for eligible borrowers. The lawsuit argued that this was an overreach of executive power and that only Congress had the authority to pass such legislation.

The Supreme Court did not address the case’s merits but instead ruled that since the states were not directly affected by the executive order, they lacked legal standing to bring the case to Court. This means that while the Administration’s student loan debt relief plan remains unconstitutional, Congress can still implement it.

Background Information

Background Information: Student loan debt has become a significant issue in the United States. As of 2021, there is approximately $1.7 trillion in student loan debt. This amount is spread over 44 million borrowers, with the average borrower owing around $39,000. The burden of student loan debt has been especially difficult for low-income borrowers and those who attended for-profit colleges, which tend to have the highest loan default rates.

President Biden has made alleviating this debt burden a priority of his Administration. He proposed cancelling up to $50,000 in student loan debt for borrowers with an annual income below $125,000. This proposal was resisted by some Republicans, who argued that it was an overreach of executive power and should be left up to Congress.

Analysis

The Supreme Court’s ruling is a setback for the Biden Administration and those struggling to pay their student loan debt. The Administration had hoped that its executive order would help millions of borrowers get out of crippling debt, but it now seems that this goal will have to be achieved through legislation. This may be difficult as it will require both houses of Congress to come together and pass a bill, which may be difficult given the political climate.

In addition, the Supreme Court ruling sets an important precedent. By rejecting the lawsuit on procedural grounds rather than addressing its merits, the Court has affirmed that executive orders cannot be challenged in Court unless those challenging them show that they have been directly affected by it.

Biden’s Student Debt Relief Plan:

The ruling of the Supreme Court is a significant setback for the Biden Administration and those who have been struggling under the burden of student loan debt. Despite this setback, President Biden remains committed to providing relief for those affected by student loan debt, and his Administration will continue to work with Congress to pass legislation that would provide much-needed assistance.

It should be noted that while the Supreme Court ruling was a setback, it does not mean that Biden’s plan to cancel up to $50,000 of student loan debt for qualifying borrowers is impossible. The Court did not address the case’s merits, and it is still possible that Congress could pass legislation providing relief for borrowers.

Overview of the Plan

Overview of the Plan: President Biden proposed cancelling up to $50,000 in student loan debt for borrowers with an annual income below $125,000. This plan aimed to provide much-needed relief for borrowers struggling with student loan debt. The proposal would allow qualifying borrowers to have a significant portion of their debt forgiven. It could help millions become free from the crushing weight of student loan debt. Unfortunately, the proposal was met with resistance from some Republicans and ultimately was struck down by the Supreme Court on procedural grounds. Despite this setback, Biden remains committed to providing relief for those affected by student loan debt and is hopeful that Congress can come together and pass legislation that would provide much-needed help to borrowers.

Political Significance of the Plan

Political Significance of the Plan: President Biden’s proposed student loan debt relief plan has important political implications. This plan was resisted by some Republicans, who argued that it was an overreach of executive power and should be left up to Congress. The Supreme Court ruling affirms this argument, as it sets a precedent that executive orders cannot be challenged in Court unless those challenging them show that they have been directly affected.

At the same time, this ruling does not mean Biden’s plan is impossible. Instead, it shows that the only way to make this plan a reality is for Congress to come together and pass legislation. Given the current political climate, this could be a difficult task, but if successful, it would provide much-needed relief for millions of borrowers.

Supreme Court Ruling:

The Supreme Court’s ruling on President Biden’s student debt relief plan has far-reaching implications. Not only does it set a precedent about the limitations of executive orders, but it also highlights the importance of Congress in providing much-needed relief for the millions of Americans struggling under crippling student loan debt. If Biden plans to become a reality, both Houses of Congress must come together and pass legislation providing relief for borrowers. Only then can these individuals become free from the crushing burden of student loan debt.

Who Voted in Favor and Against?

The Supreme Court ruling on President Biden’s student loan debt relief plan was a 6-3 vote, with Chief Justice John Roberts joining the four liberal Justices in favour of the decision. Justices Thomas, Alito, and Kavanaugh cast the three dissenting votes. It should be noted that while this ruling was a setback for the Biden Administration, it does not mean that his plan is impossible. Instead, it highlights the need for Congress to come together and pass legislation providing relief for borrowers.

Majority Opinion from Justice Roberts

In the majority opinion, Chief Justice John Roberts argued that President Biden’s student debt relief plan was an unconstitutional overreach of executive power and should not be enforced unless challenged in Court by those directly affected. He noted that the president does not have the power to forgive student loan debt and that such authority rests solely with Congress. Roberts concluded by noting that if Biden plans to become a reality, it must be passed through legislation.

Oral Arguments for the Case:

During the oral arguments for the case, those in favour of striking down President Biden’s student debt relief plan argued that it was an unconstitutional exercise of executive power and should be left up to Congress. They argued that if the president can forgive student loan debt on his own, it would set a dangerous precedent and undermine the balance between the executive and legislative branches of government. On the other hand, those against the ruling argued that the president needed to act to provide much-needed relief for borrowers struggling with student loan debt.

Argument Made by South Carolina Attorney General Alan Wilson

South Carolina Attorney General Alan Wilson argued that President Biden’s student debt relief plan was an unconstitutional exercise of executive power and should be left up to Congress. Wilson noted that the president does not have the authority to forgive student loan debt and that such a policy would set a dangerous precedent and weaken the balance between the executive and legislative branches of government. He further argued that granting the president such power would undermine the separation of powers and thus weaken the rule of law.

Impact on Individual Borrowers and Pell Grants:

The Supreme Court’s ruling on President Biden’s student debt relief plan has significant implications for individual borrowers and Pell Grants. Borrowers who were hoping for relief from their student loan debt under the president’s plan will now have to wait until Congress passes legislation to forgive those loans. In addition, the ruling could affect Pell Grant eligibility as forgiveness of student loan debt would have allowed more students to qualify for the grants.

Effect on Federal Student Loan Debtors

The Supreme Court’s ruling on President Biden’s student debt relief plan significantly affects federal student loan debtors. With the plan declared unconstitutional, these borrowers are left without immediate relief from their crushing student loan debt. This means they will continue struggling with the burden of monthly payments and interest rates until Congress passes legislation to forgive these loans. In addition, the ruling could also affect Pell Grant eligibility, as debt forgiveness would open up the possibility for more students to qualify for the grants.