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ARTICLE · 14 JULY 2023

Supreme Court Rules Against Biden Administration's Student Loan Forgiveness Plan

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On June 30, in Biden v. Nebraska, the Supreme Court ruled against the Biden administration's student loan relief plan in a 6-3 decision. The plan, which was estimated to impact more than $430 billion of student...

United StatesLitigation, Mediation & Arbitration
Francine Friedman
Francine Friedman
Derrick Stanfield
Derrick Stanfield
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On June 30, in Biden v. Nebraska, the Supreme Court ruled against the Biden administration's student loan relief plan in a 6-3 decision. The plan, which was estimated to impact more than $430 billion of student loan principal, would have canceled student loan debt for more than 40 million borrowers.

A student loan payment pause was implemented in response to COVID-19. In August 2022, in an effort to ease the transition back to repayment, the Department of Education announced it would provide loan forgiveness of up to $20,000 for Pell Grant recipients and up to $10,000 for non-Pell Grant recipients with student loans held by the Department of Education.

Justices Roberts, Thomas, Alito, Gorsuch, Kavanaugh and Coney Barrett found that Congress had not given the executive branch authority to cancel student loan principal, instead finding that the Department of Education's powers were limited to waiving or modifying "existing statutory or regulatory

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