Supreme Court says NO to Student Loan "Relief"
Biden has a long history of shenanigns when it comes to government student loans
“Last year, the Secretary of Education established the first comprehensive student loan forgiveness program, invoking the Higher Education Relief Opportunities for Students Act of 2003 (HEROES Act) for authority to do so. The Secretary’s plan canceled roughly $430 billion of federal student loan balances, completely erasing the debts of 20 million borrowers and lowering the median amount owed by the other 23 million from $29,400 to $13,600. Six States sued, arguing that the HEROES Act does not authorize the loan cancellation plan. We agree.” — SCOTUS

Cancelling student loans, which has been mislabeled "student loan forgiveness," is a very contentious issue. Click here to watch my video about student loan cancellation when the government announced last fall that it would be decreasing and "forgiving" student loans.
In 1958, Congress authorized the first federal student loans, providing up to $1,000 per student per year to help them stay competitive in a global economy. National Defense Education Act of 1958, 72 Stat. 1584.
There are already 43 million borrowers who have taken out federal student loans totaling $1.6 trillion. Letter from Congressional Budget Office to Members of Congress, p. 3 (Sept. 26, 2022)
In a 6-3 decision, in Biden v. Nebraska the Supreme Court held that federal law does not authorize the Secretary of Education’s loan forgiveness program. In other words, there is nothing in the HEROES Act that provides authority for the secretary to transfer voluntarily assumed debt onto those who didn’t agree to it.
Held: The HEROES Act allows the Secretary to “waive or modify” existing statutory or regulatory provisions applicable to financial assistance programs under the Education Act, but does not allow the Secretary to rewrite that statute to the extent of canceling $430 billion of student loan principal. The text of the HEROES Act does not authorize the Secretary’s loan forgiveness program. The Secretary’s power under the Act to “modify” does not permit “basic and fundamental changes in the scheme” designed by Congress. In such circumstances, the Court has required the Secretary to “point to ‘clear congressional authorization’ ” to justify the challenged program. And as explained, the HEROES Act provides no authorization for the Secretary’s plan when examined using the ordinary tools of statutory interpretation—let alone “clear congressional authorization” for such a program.
As then-Speaker of the House Nancy Pelosi explained: “People think that the President of the United States has the power for debt forgiveness. He does not. He can postpone. He can delay. But he does not have that power. That has to be an act of Congress.” Press Conference, Office of the Speaker of the House (July 28, 2021).
Despite Pelosi getting it right for once, a memorandum of law from the Education Department's Office of General Counsel, and Biden himself informing the public that he lacks the authority to enact a student loan "forgiveness" scheme through Executive Order, that didn’t stop him from trying.
It was very clear the HEROES Act did not provide authority to transfer the debt burden of nearly $1,000,000,000,000 in student loans to taxpayers. All that was needed was a plaintiff with standing.
Because the federal government supports and approves of student loans, universities have been able to raise tuition prices beyond what is reasonable. Even with the price increases, colleges know that the federal government will still provide student loans.
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