Supreme Court strikes down student loan forgiveness program, Biden pushing ahead with new plan

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President Joe Biden is offering an alternative student debt plan designed to ease borrowers' threat of default if they fall behind on their payments after the Supreme Court struck down his original initiative.

Six Republican-led states -- Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina -- argued the program was executive overreach. The administration pushed back the plan was lawful under the 2003 law HEROES Act, which states the government can provide relief to recipients of student loans when there is a "national emergency."

Justice Elena Kagan, in her dissent joined by Justices Sonia Sotomayor and Ketanji Brown Jackson, said the court is overstepping its authority. The court's decision is a blow for Biden, who made tackling student loan debt a key campaign pledge. The loan forgiveness program was rolled out just ahead of the 2022 midterm elections, with Biden highlighting how the relief would have a life-changing impact on middle-class Americans.

Top Democrats criticized the court's decision and quickly called on Biden to explore more options to provide relief to borrowers, while Republicans lauded the ruling.

 

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