Biden's student loan forgiveness program was rejected by the Supreme Court. Here's what borrowers need to know
The Supreme Court struck down President Joe Biden's student loan forgiveness program Friday, blocking millions of borrowers from receiving up to $20,000 in federal student debt relief, just months before student loan payments are set to restart after a yearslong pause.
2023-07-01 00:17
Supreme Court strikes down Biden’s plan to cancel student loan debts
The US Supreme Court has struck down President Joe Biden’s plan to cancel student loan debts for millions of Americans, reversing his campaign-trail promise as borrowers prepare to resume payments this summer. Chief Justice John Roberts delivered the 6-3 decision from the court’s conservative majority. The ruling, which stems from a pair of cases challenging the Biden administration and the US Department of Education, argues that the president does not have authority to implement sweeping relief, and that Congress never authorised the administration to do so. Within 30 minutes on the last day of its term, the court upended protections for LGBT+ people and blocked the president from a long-held promise to cancel student loan balances amid a ballooning debt crisis impacting millions of Americans. Under the plan unveiled last year, millions of people who took out federally backed student loans would be eligible for up to $20,000 in relief. Borrowers earning up to $125,000, or $250,000 for married couples, would be eligible for up to $10,000 of their federal student loans to be wiped out. Those borrowers would be eligible to receive up to $20,000 in relief if they received Pell grants. Roughly 43 million federal student loan borrowers would be eligible for that relief, including 20 million people who stand to have their debts canceled completely, according to the White House. Roughly 16 million already submitted their applications and received approval for debt cancellation last year, according to the Biden administration. The long-anticipated plan for debt cancellation was met almost immediately with litigation threats from conservative legal groups and Republican officials, arguing that the executive branch does not have authority to broadly cancel such debt. Six GOP-led states sued the Biden administration to stop the plan altogether, and a federal appeals court temporarily blocked any such relief as the legal challenges played out. Since March 2020, with congressional passage of the Cares Act, monthly payments on student loan debt have been frozen with interest rates set at zero per cent. That Covid-19-pandemic era moratorium, first enacted under Donald Trump and extended several times, was paused a final time late last year – until the Education Department is allowed to cancel debts under the Biden plan, or until the litigation is resolved, but no later than 30 June. Payments would then resume 60 days later. The amount of debt taken out to support student loans for higher education costs has surged within the last decade, alongside growing tuition costs, increased private university enrollment, stagnant wages and GOP-led governments stripping investments in higher education and aid, putting the burden of college costs largely on students and their families. The crisis has exploded to a total balance of nearly $2 trillion, mostly wrapped up in federal loans. Millions of Americans also continue to tackle accrued interest without being able to chip away at their principal balances, even years after graduating, or have been forced to leave their colleges or universities without obtaining a degree at all while still facing loan repayments. Borrowers also have been trapped by predatory lending schemes with for-profit institutions and sky-high interest rates that have made it impossible for many borrowers to make any progress toward paying off their debt, with interest adding to balances that exceed the original loan. One analysis from the Education Department found that nearly 90 per cent of student loan relief would support people earning less than $75,000 per year. The median income of households with student loan balances is $76,400, while 7 per cent of borrowers are below the poverty line. That debt burden also falls disproportionately on Black borrowers and women. Black college graduates have an average of $52,000 in student loan debt and owe an average of $25,000 more than white graduates, according to the Education Data Initiative. Four years after graduating, Black student loan borrowers owe an average of 188 per cent more than white graduates. Women borrowers hold roughly two-thirds of all student loan debt, according to the American Association of University Women. Mr Biden’s announcement fulfilled a campaign-trail pledge to wipe out $10,000 in student loan debt per borrower if elected, though debt relief advocates and progressive lawmakers have urged him to cancel all debts and reject means-testing barriers in broad relief measures. In November 2020, the president called on Congress to “immediately” provide some relief for millions of borrowers saddled by growing debt. “[Student debt is] holding people up,” he said at the time. “They’re in real trouble. They’re having to make choices between paying their student loan and paying the rent.” This is a developing story Read More Supreme Court allows Colorado designer to deny LGBT+ customers in ruling on last day of Pride Month Biden condemns Supreme Court striking down affirmative action: ‘This is not a normal court’ Justice Ketanji Brown Jackson delivers searing civil rights lesson in dissent to affirmative action ruling
2023-06-30 23:16
Melania Trump hawks $50 NFTs to ‘celebrate our great nation’ ahead of July 4
Melania Trump is launching a collection of $50 non-fungible tokens (NFTs) featuring US landmarks in time for the 4th of July. The former first lady’s “1776 Collection” includes images of Mount Rushmore, the Statue of Liberty and the Liberty Bell, set to patriotic-themed music. Ms Trump’s office said in a statement that each NFT was designed to celebrate the “foundations of American ideals”. “The 1776 Collection of artwork draws inspiration from several iconic landmarks of our nation, which I had the privilege of visiting during the time I served as first lady,” Ms Trump said. “I am proud to celebrate our great nation and remain inspired by the words contained within the Declaration of Independence.” An NFT is a blockchain-based certificate verifying ownership. The 1776 Collection was created on the Solana blockchain, and went on sale on Thursday. Ms Trump’s office said a portion of the sale price would go to support foster children. The site did not immediately respond to a request for further details about what percentage of the proceeds would be donated. Ms Trump has previously dabbled in NFTs since leaving the White House. In 2021, she launched a digital watercolour painting of her eyes for $180 each. Then in 2022, Ms Trump faced accusations of bidding $185,000 in an auction for her “Head of State Collection 2022.” An analysis of Solana blockchain transactions by Bloomberg found the winning bid of 1800 SOL came from a wallet that belonged to the entity that originally listed the project for sale. Read More Trump news - live: DOJ prepares to hit Trump with new charges as ex-official cooperates in 2020 election probe Trump lashes out at ‘fake’ Jake Tapper after CNN host cuts away from arraigned ex-president meeting fans Meet Jesse Watters, the Fox News host helming Tucker Carlson’s primetime slot Prosecutors are prepared to hit Trump and his allies with new charges, sources say
2023-06-30 22:19
Sunak Slammed Over Environment as UK Climate Minister Quits
Climate Minister Zac Goldsmith quit Rishi Sunak’s UK government on Friday with an excoriating broadside against the prime
2023-06-30 18:16
What the Supreme Court's ruling on affirmative action does and does not do
The Supreme Court's landmark decision on Thursday to gut affirmative action has made it unlawful for colleges to take race into consideration as a specific factor in admissions.
2023-06-30 11:26
Supreme Court’s Black Justices Spar Over Affirmative Action
The US Supreme Court’s two Black justices sparred over the meaning and impact of race in dueling opinions
2023-06-30 08:54
John Roberts doesn't want race to matter as he ends affirmative action for college admission programs
As he began reading excerpts of his decision eviscerating college affirmative action, in a hushed courtroom Thursday, Chief Justice John Roberts delivered on a singular long-held goal.
2023-06-30 07:53
At least 100,000 could have had data exposed after US health department was hit by global cyberattack
At least 100,000 people could have had their data compromised by a hack of contractors at the Department of Health and Human Services, a department official said Thursday, making it the latest US government agency to be caught up in a sweeping cyberattack connected to Russian cybercriminals.
2023-06-30 05:24
How the White House prepared for the Supreme Court's affirmative action ruling
The White House has been preparing for months for a potential Supreme Court ruling gutting affirmative action, even as President Joe Biden expressed optimism late last year that the court would uphold consideration of race in college admissions.
2023-06-30 02:56
Biden condemns Supreme Court striking down affirmative action: ‘This is not a normal court’
President Joe Biden on Thursday said he “strongly, strongly disagree[d” with the Supreme Court’s decision to strike down the use of affirmative action programmes in college admissions decisions and condemned the six-justice majority that did so as “not a normal court”. Mr Biden’s harsh words for the highest court in the land came in response to a reporter’s query on whether the court was acting as a “rogue court,” just after he addressed the landmark decision in brief remarks before departing the White House for New York. Speaking from the Roosevelt Room in the West Wing, the president echoed the dissenting Justices, Sonia Sotomayor, Elena Kagan and Ketanji Brown Jackson, in his reaction to the ruling, which ends the long-standing precedent that allowed colleges and universities to use affirmative action to help establish a diverse group of accepted students. “Discrimination still exists in America. Today’s decision does not change that,” Mr Biden said in a brief press conference. He added: “I believe our colleges are stronger when they’re racially diverse. Our nation is stronger because we are tapping into the full range of talent in this nation. We cannot let this decision be the last word.” The rulings come from two consolidated cases, Students for Fair Admissions v University of North Carolina and Students for Fair Admissions v Harvard College. Both cases were brought forth by the anti-affirmative action organisation Students for Fair Admissions. That group, which is headed by conservative legal strategist Edward Blum, has for years made attempts to give the court’s GOP-appointed majority a chance to gut previous court precedents which have been used to justify limited use of race-based preferences in college admissions. While the court upheld such programmes in a decision nearly two decades, ago, the newly-emboldened conservative majority swept away any legal justification for them in Thursday’s opinions. In a 6-3 and 6-2 decision, the Court’s conservative majority sided with Students for Fair Admissions claiming the use of race-conscious admissions was a violation of the Equal Protection Clause of the 14th Amendment. Now, higher education institutions will no longer be allowed to consider race as a factor in admissions. Instead, students who wish to have their race or culture considered in their application will have to volunteer the information like in their personal essay. At the end of the press conference, Mr Biden responded to a question about the court’s decision to strike down a long-standing precedent: “This is not a normal Court.” Leaders from Harvard said in a letter that they would “comply” with the court’s decision but emphasised that “deep and transformative teaching, learning, and research depend upon a community comprising people of many backgrounds, perspectives, and lived experiences.” Mr Biden said he is directing the Department of Education to analyse best practices for high education institutions to create more inclusive and diverse student bodies without using race as a conscious factor in admissions and recruiting. The Harvard Black Students Association called the court’s decision, “detrimental”, adding that it “poses a significant threat to the future of the Black community on and beyond our campus.” “It is evident that the college application system cannot maintain holistic evaluation without taking into consideration how race profoundly influences our experiences, perspectives, and identities in multifaceted ways,” the Harvard Black Students Association wrote. Derrick Johnson, the president and CEO of the NAACP, said in a statement: “In a society still scarred by the wounds of racial disparities, the Supreme Court has displayed a willful ignorance of our reality.” Discussions around affirmative action have generated debate among Republicans and Democrats for years. Those in support of it believe it is necessary to create fair and equal opportunity for students of color because higher education institutions have failed at creating diverse student bodies. Those against affirmative action believe it puts other students, like white or Asian American students, at a disadvantage. Former president Donald Trump celebrated the ruling calling it “everyone was waiting for” in a post on Truth Social. “We’re going back to all merit-based – and that’s the way it should be!” Mr Trump wrote. Mr Trump appointed three of the six conservative Justices on the Court while serving as President of the United States – Justices Neil Gorsuch, Brett Kavanaugh and Amy Coney Barrett. Mr Trump’s former vice president, Mike Pence, also expressed support for the Court’s decision, writing on Twitter, “I am honored to have played a role in appointing three of the Justices that ensured today’s welcomed decision.” He added: “There is no place for discrimination based on race in the United States, and I am pleased that the Supreme Court has put an end to this egregious violation of civil and constitutional rights in admissions processes, which only served to perpetuate racism.” The ruling will likely have repercussions beyond higher education institutions, extending to elementary, middle and high schools as well as workplaces and more as it opens a door for challenges to racial diversity programs. Read More Justice Ketanji Brown Jackson delivers searing civil rights lesson in dissent to affirmative action ruling How the government that promised to ‘stop the boats’ has lost control of its immigration policy Clarence Thomas says he doesn’t have a ‘clue’ what diversity means as Supreme Court takes aim at affirmative action One year after the anti-abortion ruling, the White House keeps a spotlight on the issue
2023-06-30 02:16
Supreme Court Rejects Use of Race in University Admissions
The US Supreme Court effectively barred universities from using race as a factor in university admissions, marking the
2023-06-29 22:45
Supreme Court guts affirmative action in college admissions
The Supreme Court says colleges and universities can no longer take race into consideration as a specific basis for granting admission, a landmark decision that overturns long-standing precedent that has benefited Black and Latino students in higher education.
2023-06-29 22:25