NASHVILLE, Tenn. (WTVF) — It's a decision impacting millions of people, and the United States Supreme Court blocked it. In a six-to-three ruling, President Biden's plan to forgive student loan debt was struck down.
The program, which aimed to provide some relief to more than 26 million applicants burdened with student loan debt, saw over 16 million approvals before the Department of Education halted the acceptance of applications due to legal challenges.
The ruling comes as a significant blow to individuals hoping for financial respite during these tough times.
The rising cost of education has made it increasingly difficult for students to afford their tuition fees without resorting to loans.
Many individuals, including nursing students Sara Byers, Ellie Roberts, and Sarah Patton from Nashville, find themselves grappling with the burden of student loan debt.
"The interest rates are so high now that no matter how much you pay, it's still the same amount every time," Byers said.
Thus, when President Joe Biden proposed a plan to alleviate student loan debt, Byers, Roberts, and Patton were filled with hope.
The plan sought to allow eligible borrowers to cancel up to $20,000 in debt, with an estimated impact on more than 40 million borrowers.
Roberts expressed her relief.
"I think it was comforting knowing that we were probably going to pursue further programming, and having support for past debt and loans would provide a little peace of mind," she said.
However, their hopes were dashed when the U.S. Supreme Court struck down the plan , in a 6-3 decision, citing the President's overreach of constitutional powers.
This decision comes as millions of people had already submitted applications to the program.
President Biden called the Court's decision "unthinkable," and assured borrowers that the fight isn't over.
He pledged to work quickly to provide an alternative pathway for student debt relief, utilizing the provisions of the Higher Education Act.
Borrowers like Byers expressed their disbelief at the news, recognizing the potential detrimental impact on their budgets.
"Paying for student loans now is just something else we have to tackle along with full-time school," Byers said.
As the Fall semester approaches, many borrowers are set to resume loan repayments after a three-year pause due to the pandemic.
Coupled with high prices and inflation, the Supreme Court's ruling poses a significant financial setback for these individuals.
However, they remain hopeful that another chance for relief will arise soon.
"I hope there is a better change in the interest rate, that’s what’s kind of getting me. I’ve been paying on one loan for eight years, and it’s the same amount that it was when I started," Byers said.
President Biden reiterated his commitment to address the issue of student loan debt and ensure relief for borrowers. He said and his administration are quickly working to provide an alternative pathway that would offer much-needed assistance.
