Local students react to SCOTUS decision on student loan forgiveness
The court's decision prevents the creation of a program designed to deliver up to $20,000 of relief for millions of student borrowers
WILMINGTON, NC (WWAY) — A landmark decision by the Supreme Court on Friday, June 30th will block President Joe Biden’s plan for student loan forgiveness.
The court’s decision prevents the creation of a program designed to deliver up to $20,000 of relief for millions of student borrowers.
An interest-free payment pause on federal student loans was implemented in March 2020 in response to the pandemic.
But in a 6 -3 ruling, the court said the Biden administration overstepped its authority with the plan to cancel or reduce some $400 billion in debt for millions of people.
The court said the administration needed direct authorization from Congress to make things permanent.
That lack of action from Congress has some students frustrated.
“I think that our government has the choice to do anything that they want to in any capacity,” Cape Fear Community College student Solomon Hill said. “I just don’t think that they do and I don’t think that they ever will. I mean, in the past, there have been multiple things that I think should have not been an argument or political that is just, like basic human rights issues. I think that access to education is a basic human rights issue.”
“It does kind of, it speeds up my necessity to have to go and start paying for them,” UNCW graduate Kayla Scott said. “I have, like you said, fingers crossed, hoping that maybe it was going to be covered or some help would come. However, now I don’t have that so it definitely does add some pressure and panic, I can feel.”
President Joe Biden said he will try and find another way to provide student debt relief.
“So we need to find a new way and we’re moving as fast as we can,” Biden said. “First, I’m announcing today a new path consistent with today’s ruling to provide student debt relief to as many borrowers as possible as quickly as possible. We will ground this new approach in a different law than my original plan. This new path is legally sound, it’s gonna take longer. But in my view, it’s the best path that remains to providing for as many borrowers as possible.”
Those plans include the Secretary of Education starting a rule-making process for a new repayment plan relying on different laws.
The Department of Education is also starting a new repayment schedule that will start in October, which will protect certain borrowers who have missed payments.
Student loan experts recommend borrowers get in contact with their student loan service with any questions regarding their loans as quickly as possible.
