No forgiveness for President Biden’s student loan forgiveness plan. The U.S. Supreme Court has struck down today Biden’s effort that would have forgiven nearly $500 billion in student debt for more than 40 million borrowers.
U.S. Senator Eric Schmitt, R-Missouri, said Biden’s “student loan bailout was nothing more than a thinly veiled political ploy on a shaky foundation to score cheap points.”
“There’s a fundamental fairness argument. The idea that the truck driver, the waitress, or working class folks, who either paid their student loans off or took a different path entirely shouldn’t be saddled with the unpaid debts of the tenure college professor,” Schmitt told Missourinet.
The high court has ruled that the plan, which would have allowed eligible borrowers to cancel up to $20,000 in debt, is unconstitutional.
“This is completely without any authority,” he said. “One person, the president, to with a stroke of a pen write off $500 billion in student loan debt, he wasn’t authorized to do it. The court saw it that way and I’m glad they did.”
Missouri Congresswoman Cori Bush, a St. Louis Democrat, said the president’s plan is “completely legal.”
“The Supreme Court’s extreme right-wing justices have repeatedly proven that they prioritize lining their own pockets with handouts from their billionaire-besties over straightforward and legal student debt relief for millions of borrowers,” Bush said in a written statement. “It remains evident that we cannot trust our nation’s highest court, which is why President Biden must keep the promise he made to cancel student debt for over 40 million people by pursuing one of the several alternative paths at his disposal to deliver debt relief.”
The Missouri Higher Education Loan Authority, otherwise known as MOHELA, is one of the largest federal student loan companies in the U.S. In the Biden vs. Nebraska case the Supreme Court ruled on, the Nebraska Attorney General’s Office argues that Biden’s effort threatens to cut MOHELA’s operating revenue by 40%. The company is state-created and state-controlled, with some proceeds going to state scholarship programs.
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