U.S. Supreme Court Rules with Nebraska and Five Other States in Challenge to Student Loan Forgiveness Program

LINCOLN–(KFOR June 30)–Nebraska and five other states won a lawsuit they filed against the Biden Administration’s $400-million student loan forgiveness program, on a 6-3 decision on Friday morning by the U.S. Supreme Court.

The court held that the administration needs Congress’ endorsement before undertaking so costly a program and rejected arguments that a bipartisan 2003 law dealing with student loans provided the authority Biden claimed.

Nebraska Attorney General Mike Hilgers issued a statement, saying quote-“the question of student loan burden is now back to where it belongs—Congress. Our elected federal representatives are closest to the people, have the power of the purse, and are entrusted with the responsibility of tackling difficult policy issues.”-end quote.

Millions of borrowers are on the hook for repayments that are supposed to resume by late summer. The U.S. Department of Education says interest accrual will start Sept. 1 and repayments on the federal student loans resume on Oct. 1.