The United States Supreme Court struck down President Joe Biden’s relief plan on Friday, aimed at eliminating $400 billion in student loan debt.
The 6-3 decision, with conservative justices in the majority, means that millions of borrowers will resume monthly student loan payments on Oct. 1. The Court rejected the argument that the HEROES Act, a law that deals with student loans, gave the federal government the power to undertake the plan.
Temple is reviewing the Court’s ruling and is aware of the debt burden that some students and alumni at the university carry.
“We are dedicated to supporting comprehensive approaches to reducing student debt and look forward to partnering with appropriate leaders and agencies in a holistic review of possible solutions,” the university wrote in a statement to The Temple News.
Biden’s plan, announced in August 2022, would have forgiven $10,000 in debt for U.S. students who have an individual income of $125,000 or less or a household income of less than $250,000. Pell Grant recipients could have received $20,000.
“Six States sued, arguing that the HEROES Act does not authorize the loan cancellation plan,” wrote Chief Justice John Roberts in the court’s opinion. “We agree.”
Roughly 59 percent of Temple students qualified for Biden’s debt relief plan, according to an October 2022 survey conducted by The Temple News. Thirty-five percent of students who qualified pay for college themselves and 25 percent receive help from their parents or scholarships.
The survey also found that Temple students owe approximately $24,000 in student loan debt. Temple’s request for a 16 percent increase in state funding for 2023-2024 fiscal year was not approved, meaning tuition for the upcoming school year will likely increase.
“Temple understands the value and importance of accessible higher education in closing the wealth gap, fueling the workforce, and propelling our nation forward through innovation and research,” the university wrote. “Through programs like Temple’s Fly-in-Four, the Cecil B. Moore Scholars, and improvements in transfer credit processes, we are committed to keeping higher education affordable for our students.”