This argument has placed substantial pressure on the Biden administration to devise a new strategy for student debt relief that can weather legal scrutiny.
In response to the setback, some Democrats and advocates have argued that the Education Department already possesses wide-ranging power under the 1965 Higher Education Act to pardon student loan debt.
This differs from the HEROES Act that was the center of the Supreme Court cases.
As the debate rages on, the repayment process for student loans is slated to resume at the end of August, following a pause due to the Covid-19 pandemic.
Political Implications and the Way Forward
The Biden administration had been bracing for the court’s decision, disagreeing with its outcome.
A source familiar with the White House’s plans shared that the President intends to announce new measures to protect student loan borrowers.
The blocked student loan relief plan holds significant political importance for Biden, whose promise to tackle student loan debt served as a central pledge during his 2020 election campaign.
