The U.S. Supreme Court on Friday rejected the Biden administration’s landmark plan to forgive up to $20,000 for millions of student loan borrowers.
In a statement, AFSCME President Lee Saunders said, “Today’s decision is yet another example of this court’s contempt for working families.”
The court ruled 6-3 that the Department of Education doesn’t have the authority to forgive student debt.
Biden’s plan provided $10,000 in debt relief for all direct loan holders and $20,000 for Pell Grant recipients. Nearly 40 million borrowers would have benefited from Biden’s plan, 90% of whom earn less than $75,000 per year.
“Student debt is crushing the dreams of millions of people across the country, and this decision is a major setback in their efforts to secure the relief they need so badly,” Saunders said.
AFSCME has led the fight to fix a broken student loan system, supporting Biden’s efforts to make college more affordable and create a fairer, more manageable student loan system. Despite the court’s decision, Saunders said, “we must move forward and work to identify other opportunities to address this ongoing burden.”