WASHINGTON — The Supreme Court has ruled against President Joe Biden’s plan to wipe away or reduce student loans held by millions of Americans.
The 6-3 decision, with conservative justices in the majority, effectively killed the $400 billion plan, announced by Biden last year. The court held that the administration needs Congress' endorsement before undertaking so costly a program.
Biden had proposed erasing $10,000 in federal student loan debt for those with incomes below $125,000 a year, or households earning less than $250,000. Borrowers who received Pell Grants to go to college would get up to $20,000 of their debt canceled. The White House has said some 26 million Americans applied or automatically qualified for relief.
The court's decision comes one day after it voted to strike down affirmative action in college admissions, forcing institutions of higher education to look for new ways to achieve diverse student bodies.
Who voted to strike down Biden's student loan forgiveness plan?
Justices appointed by Republican presidents voted to reject Biden's loan relief plan. These are:
- Chief Justice John Roberts
- Samuel Alito
- Clarence Thomas
- Neil Gorsuch
- Brett Kavanaugh
- Amy Coney Barrett
Who voted to allow Biden's student loan forgiveness plan?
Justices appointed by Democrat presidents voted to allow the loan forgiveness plan. These include:
- Elena Kagan
- Sonia Sotomayor
- Ketanji Brown Jackson
When will student loan payments be resuming?
Following Friday's Supreme Court decision, borrowers will still have a few months to get their finances in order before payments are due and interest resumes on student loans.
The Department of Education previously confirmed that student loan interest will kick in starting Sept. 1, but borrowers won't need to make payments until October.
The department didn't provide a specific date for payments to begin in October.
In an emailed statement, a spokesperson for the DOE said the Biden administration was still working to ease the transition back to monthly payments for millions of Americans. The statement said the administration would be in touch directly with borrowers and loan providers ahead of October.
The Associated Press contributed to this report.