The Supreme Court ruled Friday that the Biden administration’s plan to forgive student loan debt was unconstitutional, and by doing so, the Supreme Court may have lowered the deficit by nearly $400 billion, according to the Committee for a Responsible Federal Budget (CRFB).
The Biden administration’s decision to offer student debt forgiveness to millions of Americans circumvented Congress’ constitutional right to make laws on spending, the Supreme Court ruled, according to Reuters. By ruling against Biden’s plan, the Supreme Court has shaved off $400 billion from the deficit, saving taxpayers about $30 billion annually for the next decade, according to the CRFB.
“The President’s unilateral student debt cancellation plan was expensive, inflationary, poorly targeted, and would have done nothing to improve the affordability of higher education. With today’s Supreme Court decision, it’s time to put these costly cancellation schemes behind us,” Maya MacGuineas, president of the CRFB said in a statement.
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