US Supreme Court Rules Against DOE Authority To Implement Blanket Loan Forgiveness

On June 30th, 2023 the Supreme Court of The United States ruled in favor of the plaintiffs in 2 cases that were consequential to the implantation of the blanket student loan forgiveness program. Because the court ruled in favor of the plaintiffs in Biden, President of the United States, et al. v. Nebraska et al. and Department of Education et al. v. Brown et al., the plan to forgive $10,000 or $20,000 in student loan debt for almost every federal student loan borrower cannot legally be implemented.

The court’s majority opinions in each case detailed an expansive rationale for its decisions, but the most prominent trend was the court’s belief that the executive branch alone did not have the authority to implement a plan of that scope without the express consent of Congress. The justices of the court grappled with the major question of whether or not the forgiveness of $400 billion dollars could be decided by one branch of government alone.

What does this mean for Hope Credit borrowers?

Hope Credit clients with less than $20,000 of student loan debt could have benefited greatly from this plan had it ultimately been determined to be legal. However, the decision by the Supreme Court of the United States to terminate the plan has no bearing on the income-based forgiveness programs that have been federal law for more than 25 years. The current income-driven repayment (IDR) programs, which have been approved by Congress, are in no way controversial and are not vulnerable to termination. Hope Credit borrowers who participate in these programs can continue to benefit financially and make progress towards loan forgiveness.