SCOTUS Rules on $400B Student Debt Cancellation Plan, It’s Bad News for The Regime

The Supreme Court ruled Friday that the Obiden Regime overstepped its constitutional authority in having the federal government assume responsibility for the unpaid student loans of millions of Americans.

This from westernjournal.com.

The 6-3 decision, with conservative justices in the majority, effectively killed the $400 billion plan, announced by Joe-Joe last year, and kept borrowers responsible for the loans they took out.

Repayments are expected to resume by late summer.

The court held that the Regime needs Congress’ endorsement before undertaking so costly a program.

The majority rejected arguments that a bipartisan 2003 law dealing with student loans, known as the HEROES Act, gave Joe-Joe the power he claimed.

Chief Justice John Roberts wrote for the court:

Six States sued, arguing that the HEROES Act does not authorize the loan cancellation plan. We agree.

Justice Elena Kagan wrote in a dissent, joined by the court’s two other liberals, that the majority of the court:

Overrides the combined judgment of the Legislative and Executive Branches, with the consequence of eliminating loan forgiveness for 43 million Americans.

Loan repayments are expected to resume by late August under a schedule initially set by The Regime and included in the agreement to raise the debt ceiling.

Payments have been on hold since the start of the coronavirus pandemic more than three years ago.

The forgiveness program would have canceled $10,000 in student loan debt for those making less than $125,000 or households with less than $250,000 in income.

Pell Grant recipients, who typically demonstrate more financial need, would have had an additional $10,000 in debt forgiven.

The Regime said:

Twenty-six million people had applied for relief and 43 million would have been eligible.

The cost was estimated at $400 billion over 30 years.

Final thought: Common sense and the Constitution prevail again.