Joe Biden’s student debt bailout is officially dead as the Supreme Court ruled 6-3 that he lacks the authority to “cancel” that debt.
According to Fox Business:
In a 6-3 decision, the court held that federal law does not allow the Secretary of Education to cancel more than $430 billion in student loan debt.
"The Secretary’s plan canceled roughly $430 billion of federal student loan balances, completely erasing the debts of 20 million borrowers and lowering the median amount owed by the other 23 million from $29,400 to $13,600," Chief Justice John Roberts wrote for the majority. "Six States sued, arguing that the HEROES Act does not authorize the loan cancellation plan. We agree."
The initiative, which had been on hold pending litigation, involved the federal government providing up to $10,000 in debt relief – and up to $20,000 for Pell Grant recipients – for people who make less than $125,000 a year.
One estimate from the Wharton School estimated the price tag could be more than double what the CBO estimates, and would’ve blown past $1 trillion. Since the bailout does nothing to address the root cause of student debt (skyrocketing college tuition), it wouldn't be long until national student debt was exactly where it was before a bailout. If the bailout were to wipe out 700 billion worth of debt (the middle of the two estimates), that would only bring national student debt levels back to where they were in 2012.
Biden unveiled his now-failed student debt forgiveness scheme in August 2022 in a move that critics widely panned as “vote buying” ahead of the midterm elections.
Not long ago there wasn't much question that Biden *did not* have the ability to cancel student debt with the stroke of a pen, with even then-Speaker Nancy Pelosi explaining to reporters at a news conference in July 2021 that “People think that the President of the United States has the power for debt forgiveness. He does not. He can postpone. He can delay. But he does not have that power. That has to be an act of Congress.” Amusingly, Justice Roberts made reference to Pelosi in the majority opinion:
HAHAHAHAHA Justice Roberts cited Nancy Pelosi in the majority opinion when she said Biden doesn't have the power to cancel student debt. pic.twitter.com/mhhyniRPpa
— Greg Price (@greg_price11) June 30, 2023
Matt Palumbo is the author of Fact-Checking the Fact-Checkers: How the Left Hijacked and Weaponized the Fact-Checking Industry and The Man Behind the Curtain: Inside the Secret Network of George Soros
Don’t miss the Dan Bongino Show
