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SCOTUS Blocks Biden’s Student Debt Relief Plan as Administration Pivots to “New Path”

HeadlineJul 05, 2023

Back in the United States, the Supreme Court on Friday blocked President Biden’s student debt relief plan, which sought to cancel up to $20,000 in individual loans, adding up to over $400 billion of federal student debt. The 6-3 decision by the ultraconservative-led court came as a major blow to some 40 million qualified borrowers. President Biden announced his administration would pursue a “new path” for debt relief.

President Joe Biden: “The so-called Higher Education Act, that will allow Secretary Cardona, who is with me today, to compromise, waive or release loans under certain circumstances. This new path is legally sound. It’s going to take longer, but, in my view, it’s the best path that remains to providing for as many borrowers as possible with debt relief.”

Meanwhile, three civil rights groups filed a complaint against Harvard with the Department of Education, arguing Harvard’s “legacy” admissions policy discriminates against applicants of color, after the Supreme Court ruled last week colleges cannot use affirmative action in their admissions. Seventy percent of legacy students at Harvard are white, and candidates with family ties are more than five times as likely to be admitted than non-legacy applicants.

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