Biden’s loan forgiveness nixed by Supreme Court

While it’s just one of several significant cases decided by the U.S. Supreme Court before its summer break, one of them deserves discussion here. In a 6-3 decision issued June 30, the Court decided the Biden Administration’s student loan forgiveness plan will not go forward.
    The Court decided Education Secretary Miguel Cardona did not have the authority to cancel the estimated $40 billion in student loans. Importantly, the Court said the debt cancellation of this magnitude lies with Congress, not the Executive Branch. The Biden Administration cited the HEROES Act in authorizing the loan forgiveness due to the pandemic. However, the Court correctly ruled that the question is not whether something should be done, it is who has the authority to do it. While the Secretary apparently can “modify” the HEROES Act, it can’t make “basic and fundamental” changes to it.
    Hurrah for the Supreme Court’s six judges who voted in the majority. It also had a “hometown” tie as Nebraska was among the six states filing the case.
    Like many others, as this issue was being debated across the country, I cringed a bit recalling how I dutifully paid back my student loans, then watched my children do the same. I thought, “Is that fair?” Especially after reading that Biden’s plan applied to individuals earning less than $125,000 or households earning less than $250,000. It would have waived up to $10,000 for the majority of borrowers, while Pell Grant recipients would have been eligible for up to $20,000 in debt cancellation. Twenty-six million had applied for the loan forgiveness program when last week’s decision was announced.
    But even worse to me are the others who chose not to go to college and also had no benefits from Biden’s plan. What about those who chose to start a business, taking out loans for equipment and property? Many of those left out likely have small businesses. What about their loans? Do they not contribute to society, too?
    Biden’s plan clearly favored a certain segment of our country, and that’s not what America is about. Our Supreme Court Justices made the right decision, just ahead of Independence Day.