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Navigating the Economic Storm

Policy Backgrounders

CED’s Policy Backgrounders provide timely insights on prominent business and economic policy issues facing the nation.

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Biden to Pursue Alt Student Loan Forgiveness Following Supreme Court Decision

July 06, 2023

The US Supreme Court overruled the Biden Administration’s plan to cancel roughly $430 billion in student loans, again invoking the “major questions” doctrine to invalidate an executive agency action as not explicitly authorized by Congress.

  • The program would have eliminated $10,000 in debt for most borrowers, while cancelling up to $20,000 for those receiving Pell Grants.
  • The White House has vowed to pursue alternative paths to provide relief, beginning with a new 12-month “on ramp” that will prevent reporting of delinquencies to credit bureaus and interest capitalization through September 2024.
  • Meanwhile, state-level student loan forgiveness programs have expanded in recent years as a method to lure new college-educated residents.

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Authors

Dr. Lori Esposito Murray

Dr. Lori Esposito Murray

Senior Fellow for National Security & Managing Director of CEO Programs

Read BioDr. Lori Esposito Murray

Mitchell Barnes

Mitchell Barnes

Economist

Read BioMitchell Barnes

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