Supreme Court Strikes Down Biden Student Loan Forgiveness

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Supreme Court Strikes Down Biden Student Loan Forgiveness

News just came out this morning that the US Supreme Court struck down the Biden Administration’s Student Loan Forgiveness Plan, 6–3. The decision prevents more than 40 million borrowers from finding relief of up to $20,000 for some borrowers in their federal student loan debt balance.

Even though a majority of Americans favored the plan (63% vs. 36% who opposed), according to a Marquette Law School poll, Chief Justice John Roberts penned that Congress had not authorized the executive branch to forgive the student loan debts that are in excess of billions of dollars.

Roberts wrote, “The Secretary asserts that the HEROES Act grants him the authority to cancel $430 billion of student loan principal. It does not. We hold today that the Act allows the Secretary to ‘waive or modify’ existing statutory or regulatory provisions applicable to financial assistance programs under the Education Act, not to rewrite that statute from the ground up.”

The Biden Administration forgiveness plan would have forgiven $10,000 for borrowers with incomes below $125,000 ($250,000 for couples). $20,000 would have been forgiven for Pell Grant recipients.

What to Do Now?

It’s even more imperative to be in control of your finances to make way for the federal student loan payments that will resume in a few months.

Check out our previous article for practical tips on what to do from now until payments resume.

Now it’s even more vital to go to alumsum.com and create an AlumSum account if you have multiple loans across multiple loan servicers.

Stay tuned for more news and developments.

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‍AlumSum is on a mission to be the best student loan management tool you need to stay on top of all your student loans and save you time and money on paying them down. Please join our email list here to become one of our first users. When you sign up you will also get a link to a sample Google Sheet Budget that’s based on my own personal monthly budget. You can copy and save the sample, then change the categories of expenses to better suit your situation. If you’ve never budgeted before, it’s a great first step on seeing where your money is going.

Thanks for reading and stay tuned,

James Y Kim

Founder of AlumSum

Disclosure: Opinions, recommendations and analysis provided in this article are those, solely of the author’s and have not been reviewed, approved or endorsed by any financial institution. The contents of this article are also not provided or commissioned by any financial institution.

James Y Kim

Having spent my career in both the pharmaceutical and capital markets industries, I got the opportunity to go back to school and pursue an MBA. I fulfilled that life goal and graduated from the University of Chicago Booth School of Business, taking with me the knowledge, experiences, and relationships but also a significant amount of student debt. When I started to pay back my loans I realized that I had to go to a number of websites from my multiple providers to pull up all my individual student loan accounts. There wasn’t one central website that gave me a quick accurate snapshot of all that I still owed. That’s when I got the idea to build that very tool that satisfies that fragmented pain point. I hope that alumsum addresses that need for you to view all your highlighted student loan information in one place while providing helpful information to cut down the time and interest off of paying down your student debt. James is graduate of the University of Illinois at Urbana-Champaign (BS) and the University of Chicago Booth School of Business (MBA).