Biden plans 'swift' response to Supreme Court shooting down student loan debt relief

30 June 2023

On Friday morning, June 30, the U.S. Supreme Court announced yet another bombshell ruling — this time, striking down President Joe Biden's plan to cancel up to $20,000 in federal student loan debt.

In Biden v. Nebraska, the High Court's GOP supermajority ruled, 6-3, that Biden had no right to cancel that debt. The Biden Administration had argued that the cancelation was justified under the Higher Education Relief Opportunities for Students Act of 2003, which authorizes a U.S. secretary of education to provide student debt relief when there is a national emergency. And the emergency that Biden and his allies cited was the COVID-19 pandemic.

But two-thirds of the High Court disagreed, and The Messenger reports that Biden is planning an afternoon response to the ruling.

The Messenger says that according to a government source, Biden "will announce new moves to protect student loan borrowers" and "is expected to speak about the new measures on Friday."

Stephen Neukam, Amie Parnes and Nicole Gaudiano of The Messenger report, "Student debt relief advocates have been urging the Biden Administration to respond swiftly to the Supreme Court's ruling, once issued. They've said they don't want to see a repeat of last year, when Democrats criticized the (Biden) Administration for responding too slowly to the Dobbs v. Jackson ruling that overturned federal abortion rights."

The reporters add, "Borrowers face the end of a pandemic-era freeze on federal student debt payments in October. More than half of student loan borrowers have repayment concerns, according to a Financial Health Network analysis."

The Messenger's full report is available at this link.

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