The United States Supreme Court has recently overturned a decision by the Biden administration which sought to cancel or reduce student loans for millions of Americans. The 6-3 ruling, with conservative justices in the majority, has effectively killed the $400 billion plan announced by President Joe Biden last year, and has left borrowers on the hook for repayments that are expected to resume by late August. The court held that the administration needs Congress’ endorsement before undertaking such a costly program.

The majority rejected the arguments that the bipartisan 2003 law known as the HEROES Act gave Biden the power he claimed. Chief Justice John Roberts wrote for the court, “Six States sued, arguing that the HEROES Act does not authorize the loan cancellation plan. We agree.” Justice Elena Kagan wrote in a dissent, joined by the court’s two other liberals, that the majority of the court “overrides the combined judgment of the Legislative and Executive Branches, with the consequence of eliminating loan forgiveness for 43 million Americans.”

The loan forgiveness program would have canceled $10,000 in student loan debt for those making less than $125,000 or households with less than $250,000 in income. Pell Grant recipients, who typically demonstrate more financial need, would have had an additional $10,000 in debt forgiven. The cost was estimated at $400 billion over 30 years. This decision by the Supreme Court has significant implications for the millions of people who were expecting to receive loan cancellation. The loan repayment program is expected to resume by late August, and borrowers will have to prepare for the payments they were expecting to have cancelled.

Those who already applied for loan forgiveness will have to find alternative ways to manage their debt. The Biden administration had made loan cancellation a priority in its agenda. It is unfortunate that the Supreme Court’s decision will stand in the way of millions of people who were looking forward to debt relief. The Supreme Court’s ruling not only affects the borrowers, but also the creditors who were expecting to receive the loan payments. The ruling means that the total amount of loans that the government was expecting to cancel is now lost. The Supreme Court’s decision to deny student loan cancellation is not only financially significant but also politically significant.

This ruling could have a bearing on the upcoming presidential election. The decision could be used by the Republicans to question the Biden administration’s ability to deliver on its promises. The Supreme Court decision to deny student loan cancellation is certainly a setback for the Biden administration and the millions of people expecting debt relief. It is also possible that the ruling may have long-term implications on the US economy by preventing the government from undertaking costly programs without congressional approval.