The Supreme Court decided against reinstating the Biden Administration’s latest plan to cancel student debt for millions of borrowers. Biden’s SAVE Plan is an income-driven repayment plan in which monthly payments of a loan are based on the borrower’s income. Furthermore, a borrower who owed $12,000 or less could have their outstanding debt erased after making payments for 10 years.
Republican attorneys sued to stop the latest program claiming that Biden overstepped his authority. The 8th U.S. Circuit Court of Appeals court granted a temporary injunction to stop the plan. As a result, the Biden Administration took the case to the Supreme Court, and the Republican-led court refused to reinstate Biden’s plan.
Within months, the Supreme Court ruled that a U.S. President, like Donald Trump, has immunity from crimes. But a U.S. President, like Biden, does not have the authority to grant student loan forgiveness to millions in need.
The original forgiveness plan came under attack by a group in Wisconsin that claimed President Biden’s plan to cancel up to $20,000 in student loan debt violates federal law by intentionally seeking to narrow the racial wealth gap and help Black borrowers.
The allegation is among the claims in a lawsuit filed by conservative the group Wisconsin Institute for Law and Liberty on behalf of the Brown County Taxpayers Association. The complaint relied on arguments of executive overreach.
The White House has said it could help narrow the racial wealth gap and advance racial equity. However, the lawsuit claimed that those statements constitute an “improper racial motive” and violate the constitution’s guarantee of equal protection of the laws.
The president’s policy would have canceled up to $10,000 in federal student loan debt for borrowers who earn less than $125,000 per year, or less than $250,000 for married couples. Those who received Pell Grants, federal aid for lower-income students, could see up to $20,000 forgiven.
There are no racial criteria for loan forgiveness. But because of the disparities in who holds student loans, the cancellation policy could have helped Black borrowers more.
The White House believed that program would have begin to address the racial wealth disparity. It has framed as a way to give Americans a stronger financial outcome following the pandemic.
The consequences of Trump’s time in office continues to impact Americans. Trump nominated Republican judges Neil Gorsuch, Brett Kavanaugh, and Amy Coney Barrett. Along with far-Right judges Clarence Thomas, Samuel Alito, and John Roberts, the Supreme Court has been able to issue extreme ruling that have hurt Black Americans such its decision on Affirmative Action and student loan forgiveness.
The 2024 Election will define the next generation as the next U.S. President could possibly name three judges to the high court.
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