WYOMING — On June 30, the Supreme Court blocked the Biden Administration’s Student Loan Forgiveness Plan that would have extended loan forgiveness of up to $20,000 to help working and middle-class federal student loan borrowers.
The decision was 6-3.
The University of Wyoming reported that in 2020-21, 43 percent of first-time students who graduated with an undergraduate degree had student loan debt averaging $23,592. Additionally, data released by the Biden Administration in January confirmed 30,000 people in Wyoming applied or were deemed automatically eligible for relief, roughly five percent of the population.
This was one of two cases against the Administration’s Forgiveness Plan claiming unlawful exercise of presidential power since it had not been explicitly approved by Congress. Biden originally claimed that his administration had the authority under the Higher Education Relief Opportunities for Students Act of 2003 during the COVID-19 pandemic; the Act of 2003 allows waived or modified loan provisions in response to a national emergency.
The Supreme Court states their decision regarding the unlawfulness of the Plan does not directly affect individuals’ ability to obtain loan relief under the Higher Education Act.
U.S. Senators Cynthia Lummis and John Barrasso applauded the decision.
“Asking hardworking people in Wyoming to cover a $400 billion bill for doctors, lawyers and those with multiple graduate degrees has always been morally wrong,” said Senator Lummis in a press release. “I will continue to work to undo the Biden administration’s numerous overreaches that have raised the cost of living and attempted to give the federal government control over every aspect of the people of Wyoming’s lives.”
“Today’s decision is a victory for every American who played by the rules and worked hard to pay off their own debt,” Senator Barrasso said in a statement. “Senate Republicans warned that President Biden’s student loan scheme was unconstitutional. Today’s decision confirms that. We will block any attempt by President Biden and Congressional Democrats that continues this executive overreach and reckless spending. The 87% of Americans with no student loan debt should never be forced to pay off the debt of the 13% who do.”
