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Manila Bulletin devider World devider U.S. Supreme Court strikes down Biden administration's student loan debt relief plan

U.S. Supreme Court strikes down Biden administration's student loan debt relief plan

By Xinhua
Published Jul 1, 2023 12:50 am
WASHINGTON– The U.S. Supreme Court on Friday struck down the Biden administration's plan to forgive student debt for millions of borrowers. In a 6-to-3 decision along ideological lines, the conservative-dominated Supreme Court rejected the Biden administration's arguments that the plan was lawful under a 2003 law called the Higher Education Relief Opportunities for Students Act (HEROES Act). The text of the HEROES Act does not authorize the secretary of education's loan forgiveness program, said the court, adding that the secretary's power under the act to "modify" does not permit "basic and fundamental changes in the scheme" designed by the U.S. Congress. The Biden administration announced a plan last year to cancel up to 20,000 U.S. dollars for federal student loan borrowers who received a Pell Grant, a form of federal financial aid issued to lower-income students that does not have to be repaid, and up to 10,000 dollars for those who did not receive a Pell Grant.

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