US Supreme Court strikes down Biden’s amnesty for student loans

The Supreme Court ruled against the Biden administration in a lawsuit brought by Republican state representatives from Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina arguing that the student loan cancellation plan exceeded government jurisdiction. .

The court overturned the government’s amnesty decision, which affects 43 million people, by a vote of 3-6.

BIDEN REACTED TO THE DECISION

Biden said in a written statement that he believed the amnesty plan could save the lives of millions of Americans affected by the Covid-19 outbreak and that he believed the court’s decision was “wrong.”

President Biden claimed that “Republican elected officials” acted “hypocritically” by ignoring loan debts given to companies and later forgiven due to the epidemic, and by opposing the plan to provide assistance to millions of American employees.

STUDENT LOANS AND AF REIMBURSEMENT

On August 24, 2022, US President Joe Biden announced that student loan payments were postponed for the last time until December 31, and that people with an annual income of less than $125,000 would apply for an amnesty up to $20,000 in debt.

However, Biden’s student loan amnesty program was blocked by the Texas Federal District Court on November 11, 2022.

Texas Federal District Judge Mark Pittman ruled that Biden’s amnesty, amounting to $20,000 per person, for those with student loan debt, was “an unconstitutional use of Congress’s legislative power.”

The Biden administration argued that it had that right under the Higher Education Amnesty Act, which was passed by Congress in 2003, and red states took the case to the Supreme Court.

The Biden administration says 26 million people have so far applied for federal student loan amnesty of up to $20,000 under the plan. (AA)