Supreme Court strikes down Biden’s student loan forgiveness plan as unlawful

(CBS NEWS) — The Supreme Court on Friday invalidated President Biden’s student loan forgiveness plan, ruling that federal law does not allow the program to wipe out nearly half-a-trillion dollars in debt.

The 6-3 decision by the court’s conservative majority derails a major campaign pledge from the president, denying relief to 40 million Americans who stood to have up to $20,000 in student debt wiped away under the plan.

Before striking it down, the Supreme Court first said Missouri, one of the six states that challenged the lawfulness of the plan, had the right to sue, known as legal standing. That finding allowed the court to consider whether the secretary of education had the power to forgive student loan debt under a law known as the HEROES Act.

In a separate opinion, the Supreme Court unanimously said a pair of borrowers who also challenged the program lacked standing, and tossed out their challenge.

The decision from the high court is a major defeat for Mr. Biden as he pursues reelection. He pledged during his 2020 campaign that his administration would forgive at least $10,000 of federal student loan debt.

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Attorney General Josh Stein today released the following statement:

“Education is the great equalizer. It’s what helps everyone achieve the American dream. But in two separate decisions this week, the U.S. Supreme Court has made it harder for young people to bring that dream to life. With crippling student debt and without affirmative action, minority students and those from working families will have to work even harder to catch up to their peers from more privileged backgrounds. Our nation represents the promise of opportunity for all; that promise has been tarnished this week. I will keep fighting for an America that delivers on its ideals.”

We’ll have more on our noon news.