It’s not surprising but still deeply disappointing that the U.S. Supreme Court has ruled against the Biden administration’s plan to provide more than $400 billion in student loan forgiveness. Compounding the injustice is the fact that a divided Congress is unlikely to fill the vacuum left by the decision with remedial legislation. But advocates for debt relief should continue to press their case, not just at the Capitol but in next year’s elections.
Crushing student debt is a burden not just on former students but on the national economy. The pain was exacerbated by the COVID-19 pandemic, which is why the Biden administration acted, claiming authority under the Higher Education Relief Opportunities for Students (HEROES) Act of 2003. That law empowers the secretary of Education to waive or modify loan provisions in response to a national emergency.
The Biden plan was not an indiscriminate bonanza but rather was targeted to help those most in need of relief. For borrowers with an annual income of less than $125,000, the Education Department would forgive up to $10,000 in student loans. Recipients of Pell Grants, a form of financial aid for lower-income students, could qualify for up to $20,000 in loan cancellation. The scope of the problem was evident in the fact that 26 million borrowers applied for relief.
