The US Supreme Court has blocked President Joe Biden’s plans to forgive student loan debt for millions of Americans, according to White House sources.
The 6-3 decision effectively killed the $400bn plan, announced by the president last year, and left borrowers on the hook for repayments that are expected to resume by late summer.
The court held that the administration needs Congress’ endorsement before undertaking so costly a program.
The court’s action dealt blow to the 26 million US borrowers who applied for relief after the president announced the plan in August 2022 and marks a political setback for the Democratic president.
Mr Biden’s plan fulfilled his 2020 campaign promise to cancel a portion of $1.6 trillion in federal student loan debt but was
criticised by Republicans who called it an overreach of his authority and an unfair benefit to college-educated borrowers
while other borrowers received no such relief.
