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Student Debt Forgiveness:
The U.S. Supreme Court Sends a Message
On the last day of the current term, the United States Supreme Court ruled that President Joseph Biden did not have the authority to cancel or forgive up to $20,000 in student debt for those who received Pell grants. The high court held that the executive branch, represented by the President, did not have power under the United States Constitution to take on a function that was legislative in nature, a power held by Congress.
Had the student debt forgiveness plan been permitted, it would have cost U.S. taxpayers some $430 billion, and would have added dramatically to our inflation, since much more money would pour into the economy, thus pushing more price increases across the board.
The debt forgiveness proposal was a campaign promise made in 2020 by Joe Biden, and it can be argued that it was a cynical gesture to lure the younger, more liberal parts of the electorate into his side of the voting column. It can also be argued that it did not have a realistic chance of being implemented, given the separation-of-powers arguments, given the 39 months since debt repayments were suspended due to COVID-19 restrictions, and given that many students have since graduated and are now working in much higher-income professions than they would have occupied had they not gone to college.
