The Biden-backed student loan forgiveness program has been shot down by the Supreme Court, a major letdown to debt-ridden current and former college grads.
The initiative would have forgiven up to $20,000 worth of school debt for millions of Americans. Unfortunately, the Supreme Court has decided that this action is not worth the effort. Experts have long predicted that the high court would strike down the relief agenda, which President Biden has long pushed for. The forgiveness program was struck down in a 6-3 vote, with the majority ruling that Biden doesn’t have the power to nullify such large amounts of debt.
The U.S. Department of Education was also on board to have the cancellations approved. It is believed that pushing borrowers to repay the loans after a three-year pause due to the pandemic will only cause them to fall further into default. Americans are estimated to owe about $1.78 trillion in student loan debt.
Critics of the loan forgiveness have slammed Biden for expecting taxpayers to cover the loans taken out for others’ personal gain. However, research has shown that student loan companies have long used predatory means to trick young, unsuspecting students into taking out the funds to cover tuition. Since nearly half of Americans do not hold a college degree, many have been unable to secure high-paying jobs to pay back the money. Nevertheless, the conservatives within the Supreme Court are not cutting any slack to these individuals incapable of paying back such large amounts.
As loan payments resume, borrowers should prepare for monthly payments. Luckily, income-driven payment plans are available in many cases, which would only require the minimum to be paid.