Supreme Court Strikes Down Biden’s Debt Forgiveness Plan
Supreme Court Strikes Down Biden’s Debt Forgiveness Plan
In a 6-3 decision, the court’s conservative majority rejected President Biden’s plan to cancel more than $400 billion in student loan debt for millions of borrowers. It would have been one of the most expensive executive actions in U.S. history.
The Supreme Court’s conservative supermajority struck down President Biden’s proposal to cancel at least some student debt for tens of millions of borrowers, saying it overstepped the powers of the Education Department.
In a 6-to-3 decision, Chief Justice John G. Roberts Jr. wrote that a mass debt cancellation program of such significance required clear approval by Congress.
Chief Justice Roberts declared that the administration’s logic — that the secretary of education’s power to “waive or modify” loan terms allowed for debt cancellation — was a vast overreach. “In the same sense that the French Revolution ‘modified’ the status of the French nobility,” he wrote, quoting a previous court decision.
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Not looking forward to resuming my debt payments. I’d imagine the larger consequence being a bigger hit on the economy as a whole.
We are about to see a drop in consumer spending, which being one of the core functions of how capitalism operates its not gonna bode well. Combine that aspect with inflation, layoffs and a housing crisis is not going to be a fun time for anyone.