Biden's $400B Student Debt Relief Plan Rejected: What Happens Next?

President Biden's ambitious $400 billion bid to reinstate his student debt relief plan has faced a significant setback, leaving millions of borrowers in limbo. The Supreme Court has been a key player in this ongoing saga.

Supreme Court Blocks Biden's Student Loan Forgiveness Plan

Last year, the Supreme Court's conservative majority rejected an earlier plan that would have wiped away more than $400 billion in student loan debt. Now, a sharply divided Supreme Court on Friday effectively killed President Joe Biden’s $400 billion plan to cancel or reduce federal student loan debts for millions of Americans.

The Supreme Court on Thursday agreed to review the Biden administration’s effort to reinstate its student debt relief plan, but the justices declined to immediately revive the program, delaying any potential relief for borrowers.

Details of the Supreme Court's Decision

WASHINGTON – The Supreme Court on Wednesday rejected the Biden administration’s request to allow a student debt relief plan to remain in effect while its legality was being debated. The Supreme Court's 6-3 ruling last year, powered by its six conservative justices, blocked Biden's plan to cancel $430 billion in student loan debt - a move that had been widely anticipated.

The Supreme Court denied a request on Wednesday to reinstate the Biden administration’s popular student loan repayment program, leaving 8 million borrowers in limbo.

What Does This Mean for Borrowers?

With Biden's $400B student debt relief plan rejected by the court, millions of borrowers are left wondering about their financial future. The future of student loan forgiveness remains uncertain. Keep checking back for updates on cost estimates and new developments.