What does the SCOTUS ruling on student loan forgiveness mean for 16 million ... trends now
The Supreme Court has struck down President Biden's student loan forgiveness plan.
The justices ruled 6-3 that the administration overstepped its authority with the program to wipe out more than $400 million in student debt.
The program was challenged by six Republican states and two borrowers who argued Biden should have sought approval from Congress for a plan using substantial taxpayer funds.
The White House said it plans to announce new actions to protect student borrowers later today. The administration plans to make 'crystal clear to borrowers and their families that Republicans are responsible for denying them the relief that President Biden has been fighting to get to them,' a source told CNN.
But what will happen to the 16 million people already approved for forgiveness?
What does the decision mean for you?For the 26 million people who applied for the program, more than half of whom were approved, the ruling will dash their hopes of taking advantage of having up to $20,000 cut from their debt.
If no other plans are put in place before then, this means that borrowers will have to return to making full repayments in October when they resume after more than three years this fall.
Estimates from the Congressional Budget Office said the plan would have cost taxpayers roughly $400 billion, which has now been saved - in welcome news to those who opposed the program.
Some argued the forgiveness would be unfair to those who either paid their way through college, repaid their loans already, or never attended college in the first place due to the high cost of education.
The Supreme Court has struck down President Joe Biden 's $400 billion student loans forgiveness plan in another bombshell decision. The justices ruled 6-3 against Biden's plan to wipe out debts for around 20 million Americans
The Biden Administration announced its student loan forgiveness program in August 2022.
The plan intended to cancel up to $20,000 of debt for eligible borrowers - which could have wiped away an estimated $430 billion of the total $1.6 trillion in borrowed cash.
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