Biden Defeat – Supreme Court Overturns Partial Student Loan Forgiveness

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A day after the US Supreme Court ruled that decades of affirmative action against minorities at the country’s universities were unconstitutional, Washington DC Supreme Court justices caused another uproar on Friday. The planned partial cancellation of student loans has been declared illegal. The court ruled that the US government had exceeded its powers with this plan.

The decision represents a serious defeat for US President Joe Biden, who simply described the verdict as wrong. The partial waiver could have changed the lives of millions of American citizens and would also have helped the country’s economic growth, he wrote in a statement. He promised that he would leave no stone unturned to find other ways to relieve the hard-working middle class. “This fight isn’t over yet.”

Repayments will probably have to resume
It’s another blow to Biden — the court had severely curtailed his administration’s powers in the past. For months, Biden’s plan to cancel billions of dollars in student loans has been on the cards. Lower courts had blocked him after lawsuits. The US president announced the program last summer, justifying it with the financial burden of Corona – at that time, student loan repayments had already been suspended due to the pandemic.

The independent budget bureau of the US Congress estimated that the partial exemption would have cost about 400 billion dollars (about 366 billion euros). The question here is not whether something should be done, but who has the authority to do it. The government needs congressional approval here. Borrowers are now faced with resuming repayments.

Skin color judgment also rated as Biden’s defeat
The verdict follows a verdict of the day before, in which the court declared the inclusion of skin color in job applications for universities inadmissible. This, too, was seen as a defeat for Biden, who is seeking a second term next year. The Supreme Court ruled that it was unconstitutional to take into account the skin color or national origin of candidates for university admission. The promotion of ethnic minorities under the heading of “affirmative action” should promote diversity among students. The Biden administration and civil rights organizations had strongly criticized the court’s decision.

The Supreme Court has moved far to the right under former Republican President Donald Trump. There are only three female judges who are considered liberal. On the other hand, six arch-conservative judges, some of whom are deeply religious, have recently ruled repeatedly in the interests of Christian prosecutors.

Source: Krone

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