Student Loan Decision: The 1 Thing All 9 Supreme Court Justices Agreed On
Tens of millions of students have incurred debt in order to pay for tuition, fees, and other school-related expenses. Exactly how to pay it back has been a trillion-dollar question for those student loan borrowers, and many had hoped that the student loan cancellation plan that President Joe Biden announced in August 2022 would provide much-needed relief to get their finances on a better footing.
For now, though, those hopes have seen a huge setback, as the Supreme Court blocked the Biden student loan cancellation plan in a 6-3 ruling. As expected, a majority of justices found that there was sufficient standing for state governments to bring suit against the Department of Education and challenge the plan. The majority also believed that the statutory authority that the Biden administration claimed as the basis for its action was inadequate, instead asserting that Congress would have anticipated holding onto its authority to approve such a large program itself. However, the three dissenting justices disagreed, questioning the majority's interpretation of statutory authority as well as the plaintiffs' ability to challenge the plan.
It won't make student loan borrowers feel any better, but there was one aspect on which all nine Supreme Court justices agreed. That was in a second case involving student loans, where the Supreme Court ruled unanimously to vacate the lower-court ruling.
Source Fool.com
