Please do not leave this page until complete. This can take a few moments.
The U.S. Supreme Court on Friday gutted the Biden administration's effort to forgive about $430 billion in student loan debt, deeming unconstitutional a plan that the White House estimated would bring relief to one in nine Massachusetts residents.
In a 6-3 ruling that broke down along ideological lines, the nation's high court said a 2003 law known as the HEROES Act does not give President Joe Biden and his Cabinet the authority to cancel loan debt through executive, rather than congressional, action.
"We hold today that the Act allows the Secretary to 'waive or modify' existing statutory or regulatory provisions applicable to financial assistance programs under the Education Act, not to rewrite that statute from the ground up," Chief Justice John Roberts wrote in the majority opinion.
Republican-appointed Judges Samuel Alito, Clarence Thomas, Neil Gorsuch, Brett Kavanaugh and Amy Coney Barrett joined Roberts in the majority.
Democrat-nominated Judges Elena Kagan, Sonia Sotomayor and Ketanji Brown Jackson dissented, arguing that the HEROES Act in fact awarded the executive branch the authority to forgive loans. They also criticized the court itself for allowing the case brought by public officials in several Republican-controlled states to advance, saying state governments themselves would not be affected by a plan dealing with individual borrowers and federally issued education loans.
"In giving those States a forum -- in adjudicating their complaint -- the Court forgets its proper role," Kagan wrote. "The Court acts as though it is an arbiter of political and policy disputes, rather than of cases and controversies."
Biden last year instructed the U.S. Department of Education to cancel up to $10,000 in loan debt it held for borrowers who did not receive Pell Grants and up to $20,000 in loan debt for Pell Grant recipients. It would have limited relief to single borrowers who earned less than $125,000 per year and married couples who earned less than $250,000 per year.
The White House estimated in September the plan would have provided relief to about 813,000 people in Massachusetts, nearly half of whom are Pell Grant recipients.
Stay connected! Every business day, WBJ Daily Report will be delivered to your inbox by noon. It provides a daily update of the area’s most important business news.
Sign upWorcester Business Journal provides the top coverage of news, trends, data, politics and personalities of the Central Mass business community. Get the news and information you need from the award-winning writers at WBJ. Don’t miss out - subscribe today.
SubscribeWorcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
See Digital EditionStay connected! Every business day, WBJ Daily Report will be delivered to your inbox by noon. It provides a daily update of the area’s most important business news.
Worcester Business Journal provides the top coverage of news, trends, data, politics and personalities of the Central Mass business community. Get the news and information you need from the award-winning writers at WBJ. Don’t miss out - subscribe today.
Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
This website uses cookies to ensure you get the best experience on our website. Our privacy policy
To ensure the best experience on our website, articles cannot be read without allowing cookies. Please allow cookies to continue reading. Our privacy policy
0 Comments