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The U.S. Supreme Court on Friday ruled that the Biden administration does not have the legal authority to enact a one-time student debt relief program, dealing a blow to the 40 million Americans who would have qualified.

Last year, the Biden Administration rolled out a debt forgiveness plan for borrowers with federal student loans that would be a one-time cancellation of up to $10,000.

Those student loan borrowers who had received Pell Grants 鈥� federal aid to help low-income students pay for higher education 鈥� could qualify for an additional $10,000 in forgiveness, a policy that was 

滨苍听, Chief Justice John Roberts, writing for the conservative majority of the court, deemed that聽, the Higher Education Loan Authority, known as MOHELA, would have its revenue threatened by the debt relief.

The case was filed by Republican attorneys general of Nebraska, Missouri, Arkansas, Kansas and South Carolina, along with Iowa Republican Gov. Kim Reynolds鈥� general counsel, and they argued the Biden administration overstepped its reach and that MOHELA would be harmed by a loss of profits from federal student loan debt relief.

The court majority agreed. 鈥�(T)he Secretary鈥檚 plan would cost MOHELA, a nonprofit government corporation created by Missouri to participate in the student loan market, an estimated $44 million a year in fees,鈥� Roberts wrote.

鈥淢OHELA is, by law and function, an instrumentality of Missouri: Labeled an 鈥榠nstrumentality鈥� by the State, it was created by the State, is supervised by the State, and serves a public function. The harm to MOHELA in the performance of its public function is necessarily a direct injury to Missouri itself.鈥�

President Joe Biden said in a statement that 鈥渢he fight is not over鈥� to help borrowers.

鈥淚 believe that the Court鈥檚 decision to strike down our student debt relief plan is wrong,鈥� Biden said in a statement, adding that his administration plans to announce more efforts to help borrowers.

鈥淚 will stop at nothing to find other ways to deliver relief to hard-working middle-class families,鈥� he said. 鈥淢y Administration will continue to work to bring the promise of higher education to every American.鈥�

Republicans celebrated the decision. Nebraska Attorney General Mike Hilgers and Missouri Attorney General Andrew Bailey held a Friday news conference.

Bailey said the case was about 鈥減rotecting working Missouri families from getting saddled with Ivy League debt,鈥� and about 鈥渂asic fairness.鈥�

鈥淚 paid for my college with blood, sweat and tears, and service to my country, and it鈥檚 only fair that working families not be stuck with other people鈥檚 debt,鈥� Bailey said.

All three liberal Justices, Sonia Sotomayor, Elena Kagan and Ketanji Brown Jackson, dissented. Kagan, writing for the dissenters, did not agree with the finding the states had standing.

鈥淭he plaintiffs here are six States: Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina,鈥� Kagan wrote. 鈥淭hey oppose the Secretary鈥檚 loan cancellation plan on varied policy and legal grounds. But as everyone agrees, those objections are just general grievances; they do not show the particularized injury needed to bring suit.鈥�

The justices聽聽that a second case challenging the debt relief plan did not have legal standing. That case was brought by a two people with student loan debt who would either partially or entirely not qualify for the White House program. The case was backed by the conservative advocacy group the Job Creators Network Foundation.

Turbulent history for student debt relief 

The Biden administration鈥檚 student debt relief plan has not only been challenged in the courts by Republicans, but also in Congress. The House and the Senate  through the Congressional Review Act, but Biden vetoed the resolution.

More than 16 million borrowers had already been approved for relief,   before  from accepting more applicants following a nationwide injunction.

Repayments on federal student loans are set to resume Oct. 1, but interest accrual will begin starting Sept. 1, 

The Department of Education did not respond to a States Newsroom request for comment, but said on its website that the agency is 鈥渞eviewing the Court鈥檚 decision to determine next steps.鈥�

鈥嬧赌婣mericans have student loan debt, and the Federal Reserve  that the total U.S. student loan debt is more than $1.76 trillion.

A law passed in early June to address the nation鈥檚 debt ceiling  that the White House would not be able to extend the pause on repayment for federal student loans unless approved by Congress.

For three years, there has been a pause on federal student loan repayment due to the coronavirus pandemic that was initially put in place by the Trump administration and extended by the Biden administration.

In a statement, Iowa鈥檚 Reynolds said the decision 鈥渁ffirms what Iowans have believed this entire time: the hard-working men and women of this country should not bear the burden of paying off others鈥� loans.鈥�

鈥淭his plan belittles Iowans who paid their own debt or chose not to pursue a traditional four-year degree,鈥� she said.

HEROES Act central to ruling

Roberts disagreed with the Biden administration鈥檚 argument that the federal HEROES Act allowed the secretary of education 鈥渢o cancel $430 billion of student loan principal.鈥� The HEROES Act, first enacted 20 years ago, was used by the Trump administration to suspend repayments on federal student loans at the onset of the pandemic.

, U.S. Solicitor General Elizabeth B. Prelogar 鈥� representing the Biden administration 鈥� argued that under the HEROES Act, the secretary of education can 鈥渨aive or modify any statutory or regulatory provision鈥� to help borrowers in a national emergency, such as the coronavirus pandemic.

Roberts said the administration went too far. 鈥淲e hold today that the Act allows the Secretary to 鈥榳aive or modify鈥� existing statutory or regulatory provisions applicable to financial assistance programs under the Education Act, not to rewrite that statute from the ground up,鈥� Roberts wrote.

Roberts invoked the 鈥渕ajor questions doctrine,鈥� which means that if Congress wants to give an agency, such as the Department of Education, the power to make a decision of  鈥渆conomic and political significance,鈥� it has to explicitly say so.

Roberts wrote that 鈥渢he question here is not whether something should be done; it is who has the authority to do it.鈥�

Congress reacts

Congress is unlikely to act on debt relief anytime soon, with control split between a Republican House and a Democratic Senate.

Senate Majority Leader Chuck Schumer, a New York Democrat, said in a statement that he was disappointed in the decision.

鈥淭his disappointing and cruel ruling shows the callousness of the MAGA Republican-controlled Supreme Court,鈥� he said. 鈥淭he hypocrisy is clear: as justices accept lavish, six-figure gifts, they don鈥檛 dare to help Americans saddled with student loan debt, instead siding with the powerful, big-monied interests.鈥�

He called on the Biden administration to 鈥渄o everything in its power to deliver for millions of working- and middle-class Americans struggling with student loan debt.鈥�

Congressional Republicans hailed the decision.

Senate Minority Leader Mitch McConnell, a Kentucky Republican, said in a statement that the court鈥檚 decision 鈥渄eals a heavy blow to Democrats鈥� distorted and outsized view of executive power.鈥�

鈥淭he President of the United States cannot hijack twenty-year-old emergency powers to pad the pockets of his high-earning base and make suckers out of working families who choose not to take on student debt,鈥� McConnell said.

GOP Sen. Bill Cassidy of Louisiana, who introduced the Congressional Review Act resolution to overturn the Biden administration鈥檚 debt relief policy, said in a statement that the court came to the right conclusion.

鈥淭his is an obvious but welcomed ruling,鈥� he said. 鈥淧resident Biden鈥檚 student loan scheme does not 鈥榝orgive鈥� debt, but unfairly transfers the burden from those who willingly took out loans onto those who chose not to attend college or already fulfilled their commitment to pay off their loans.鈥�

But Democratic Sen. Raphael Warnock of Georgia said in a statement that the news was devastating.

鈥淭he Supreme Court鈥檚 decision to usurp the President鈥檚 executive authority to provide meaningful debt relief isn鈥檛 just bad for the everyday, hardworking Georgians who are being held back financially by crippling debt, but it鈥檚 also terrible for our entire economy and sets a dangerous precedent that binds the hands of the elected executive from taking action that reflects the will of the people,鈥� he said.

The chair of the House Education and Workforce Committee, Rep. Virginia Foxx of North Carolina, said in a statement that she was pleased the Supreme Court had held the Biden administration accountable.

鈥淢r. President, good riddance to your illegal, economically disastrous taxpayer-funded bailout for the wealthy,鈥� she said. 鈥溾�淭his 鈥榦ne-time鈥� 鈥榗ancellation鈥� of student loan debt was subterfuge for the radical Left鈥檚 ultimate goal of taxpayer-funded 鈥榝ree鈥� college for all.鈥�

Foxx has held several hearings about the Biden administration鈥檚 student debt relief program, and has spoken against the policy since it was announced.

The top Democrat on the House Education and Workforce Committee, Bobby Scott of Virginia, said in a statement that millions of borrowers will be denied 鈥渢he relief they need to make ends meet.鈥�

鈥淎 college education should not depend on how much money a student鈥檚 parents make,鈥� he said.

Scott said moving forward, Democrats should work to advance legislation to increase the funding of Pell Grants, lower interest rates for student loans and 鈥渕ake other critical reforms to make our student loan system work for students.鈥�

Rep. Frederica S. Wilson of Florida, who is the top Democrat on the Higher Education and Workforce Development Subcommittee, said in a statement that the decision will perpetuate inequality and continue to harm vulnerable borrowers of color.

鈥淚t is no secret that the pandemic has disproportionately impacted communities of color, exacerbating inequalities,鈥� she said. 鈥淪tudent debt cancellation would have been a bold step toward narrowing the racial wealth gap.鈥�

Youth vote

The decision is likely to become an issue in the race for the presidency. Youth organizations that back student debt relief said they will use the ruling to rally support.

Cristina Tzintz煤n Ramirez, president of NextGen America, one of the largest youth voting organizations, said in a statement that 鈥測oung voters will remember this come 2024.鈥�

She added that, 鈥渉eading into 2024, we will not forget the people who fight for us everyday and the people who would rather protect the pockets of shady billionaires.鈥�

Another Gen Z-led organization, Voters of Tomorrow, echoed similar sentiments.

鈥淲e hope that the Biden Administration is able to negotiate a deal through Congress or take executive action to relieve student debt for all Americans,鈥� the group said in a statement. 鈥淲hile we know it will be difficult with far-right politicians who have championed the removal of the plan, it is what is needed to remove the burden from millions of Americans.鈥�

Kendra Cotton, the CEO of New Georgia Project, a voter mobilization group, said in a statement that in 鈥渢he wake of this decision, New Georgia Project will double down on our efforts to connect the issues Black, brown, and young Georgians need to secure their economic futures 鈥� an increased minimum wage, better access to healthcare, and more affordable housing 鈥� to the importance of voting.鈥�

GOP presidential candidates, such as Nikki Haley, praised the decision as stopping executive overreach from the White House.

鈥淎 president cannot just wave his hand and eliminate loans for students he favors, while leaving out all those who worked hard to pay back their loans or made other career choices,鈥� she said.

鈥淭he Supreme Court was right to throw out Joe Biden鈥檚 power grab.鈥�

Another presidential candidate, Republican Sen. Tim Scott of South Carolina, released a video statement, arguing that there are other pathways to the 鈥淎merican Dream鈥� that don鈥檛 require a college degree.

鈥淲e need more welders, carpenters and electricians,鈥� he said. 鈥淭hese are the jobs that built America, and these are the jobs liberal elites can鈥檛 ship to China.鈥�

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