Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Loans and Borrowing

The Supreme Court struck down Student Loan Forgiveness on Friday (Kevin Dietsch/Getty Images)

By Tyler Hummel Leaders Staff

Tyler Hummel

Tyler Hummel

Tyler Hummel is a news writer for Leaders Media. He was the Fall 2021 College Fix Fellow and Health Care...

Full bio


Learn about our editorial policy

Jun 30, 2023

Student Loan Debt Will Remain Unforgiven 

The Supreme Court announced on Friday morning that it has stricken down the Biden administration’s student-loan-forgiveness plan as illegal. 

Key Details

  • On August 24, 2022, President Joe Biden announced an executive order providing up to $10,000 in debt cancellation for non-Pell Grant recipients and $20,000 in debt cancellation for Pell Grant recipients.
  • On June 30, 2023, the Supreme Court of the United States ruled six to three that Biden overstepped his legal authority and struck down the $400-billion executive order. 
  • Writing the majority opinion, Chief Justice John Roberts writes that the court agreed with the arguments of six states’ filings against the law that the federal government’s emergency powers did not permit such an aggressive executive order. 
  • Justices Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson wrote a dissent against the decision, arguing that it “overrides the combined judgment of the legislative and executive branches, with the consequence of eliminating loan forgiveness for 43 million Americans.”
  • Biden responded Friday morning to the decision, promising “new actions to protect student-loan borrowers” and accusing Republicans of being “responsible for denying them the relief that [we have] been fighting to get to them.” 

Why It’s Important 

President Biden made two of the largest moves of his presidency last August with the signing of the Inflation Reduction Act and the signing of an executive order for student loan forgiveness—two decisions that rung very popular with young voters in the months before the midterm elections and helped the Democratic Party stem a devastating electoral loss into a nominal loss. 

The forgiving program was designed to partially alleviate the $1.6 trillion in outstanding student-loan debt among young Americans. Still, it was heavily scrutinized by federal judges for working outside of the legislative procedure. The administration’s lawyers defended the order under the Health And Economic Recovery Omnibus Emergency Solutions Act, arguing that COVID emergency powers gave the president enough legal power to sign the order. 

As we previously reported, this argument was highly scrutinized by critics who decried the executive order to unilaterally forgive debt as an illegal action that assumed too much power under the executive branch without seeking proper approval from the legislative branch. The Supreme Court agreed to take up the issue and heard two challenges to the issue—Department of Education v. Brown and Biden v. Nebraska. 

The administration has reported that 43 million Americans were eligible under the program and that 26 million had already applied for student loan relief. President Biden has already promised to follow up on the decision with a renewed push for debt relief. Still, for the moment, millions of Americans have been left on the hook to pay off their loans as payments resume. 

The decision could stand to bring about retaliation against the Supreme Court, which is already facing negative reception from its prior decisions to strike down Roe v. Wade abortion protections and affirmative action in college admissions. Prominent Democrat politicians like Senator Elizabeth Warren (D-MA) have accused the conservative-leaning court of being activistic and have pushed heavily for the Biden administration to pack the court with additional progressive judges. Still, this possibility remains unlikely with a severely divided Senate. 

Justices Clarence Thomas and Samuel Alito have also faced several months of allegations over claims of financial impropriety and ethical concerns that have resulted in calls for both judges to resign. However, both judges defended themselves and have not faced Congressional scrutiny. 

Republican politicians responded this month to the order by filing five bills attempting to address problems surrounding the issue of student-loan debt, pushing programs that help students to understand the burden and decision-making process of taking on expansive loans and limiting access to loans for career tracts that are unlikely to provide financial compensation for the debt, Fox Business reports. 

Home / News / Student Loan Debt Will Remain Unforgiven 
Share
FacebookTweetEmailLinkedIn

Related Stories

Wall Street Makes $100 Billion Bet on Weight Loss Pills

by PJ Howland Leaders Staff
Investing

Oct 25, 2023

Ozempic

Investor optimism around a potential blockbuster obesity drug by Structure Therapeutics led to soaring share prices across the weight-loss pharma sector.

Key Details

  • Structure Therapeutics' stock jumped 35% after reporting positive results from early clinical trials of a once-daily weight-loss pill.
  • The experimental drug helped participants lose about 5% of their body weight over one month without side effects, although there are concerns with Ozempic.
  • Analysts predict the global anti-obesity medication market could reach sales of $100 billion by 2030, up from $71 billion currently.
  • With promising growth prospects, investors are betting on companies developing new weight loss drugs like Structure, Eli Lilly, Novo Nordisk, and Pfizer.

Go deeper

FacebookTweetEmailLinkedIn

Seattle Takes The Crown For Advanced Tech Talent

by PJ Howland Leaders Staff
Tech

Oct 24, 2023

Seattle tech talent

Seattle has emerged as the metro area with the most advanced tech talent, beating out tech hubs like San Francisco and Silicon Valley.

Key Details

  • According to a new ranking by the Burning Glass Institute, Seattle has the highest proportion of advanced tech workers compared to other cities with similarly sized tech workforces.
  • The ranking evaluated 60 million high-paying, in-demand tech job postings and histories to identify cities with cutting-edge roles like AI and cybersecurity rather than legacy tech positions.
  • With tech giants Amazon and Microsoft headquartered in Seattle, the city edged out the San Francisco Bay Area, Boston, Austin, and Raleigh on the list.
  • The report found that demand for software developers and IT support specialists has declined over the past five years as companies seek more specialized tech talent.

Go deeper

FacebookTweetEmailLinkedIn

More Americans Can’t Keep Up With Car Payments

by Colin Baker Leaders Staff
Loans and Borrowing

Oct 23, 2023

car loans, used cars

A record number of Americans are behind on their car loan payments as higher interest rates and prices weigh on consumers.

Key Details

  • According to data from Fitch Ratings, 6.11% of car loans were at least 60 days delinquent in September, the highest since tracking began in the early 2000s.
  • Some interest rates on used cars can rise to as much as 21%, according to Bankrate.
  • Soaring prices and rising interest rates are squeezing consumers, making it difficult for some to keep up with their auto loans.

Go deeper

FacebookTweetEmailLinkedIn
Chevron Gas Deal
Markets

Oct 23, 2023

Chevron Makes $53 Billion Deal Amid Surging Gas Prices

by PJ Howland Leaders Staff
nike logo
Company Culture

Oct 20, 2023

Nike to Require More In-Office Days From Employees

by Colin Baker Leaders Staff
blue collar workers
Retirement

Oct 20, 2023

Explaining The ‘C+ Grade’ Retirement Ecosystem in The United States

by PJ Howland Leaders Staff

Recent Articles

Hiring

Nov 1, 2023

Learn the Winning Answers to the Most Common Phone Interview Questions

Come to your next phone interview fully prepared

Personal Growth

Oct 30, 2023

85 Quotes on Self-Love to Boost Your Self-Esteem

Don’t fall into the trap of harsh self-criticism

Company Culture

Oct 27, 2023

What is a Sabbatical? Your Ticket to Restful Growth and Meaning

Sabbaticals can benefits both employees and businesses

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2025 Leaders.com - All rights reserved.

Search Leaders.com