Student Loan Forgiveness Plan

August 24, 2022

The Biden administration announced a student loan forgiveness program that would cancel up to $20,000 in federal student loan debt per borrower, targeting individuals with annual income below $125,000. The program would cost an estimated $400+ billion over the following decade. The Supreme Court in Biden v. Nebraska (2023) struck down the program 6-3, finding that the administration lacked the statutory authority to implement such a sweeping policy without explicit congressional authorization. The Court applied the major questions doctrine, requiring clear congressional approval for decisions of vast economic consequence. The constitutional conflict mirrored the DACA/DAPA debates, centering on whether executive officials could use broad statutory language (the HEROES Act) to justify billion-dollar policy changes. The case raised separation of powers concerns regarding the Appropriations Clause and whether such spending decisions belong exclusively to Congress.