Michigan residents with federal student loans are expressing disappointment in the wake of a U.S. Supreme court ruling.
The 6-3 decision said President Joe Biden overstepped his authority to use an executive order to forgive billions in federal student loans.
Bailey Sullivan is a Ph.D. student in the History of Art department at the University of Michigan.
She said the loan forgiveness plan would have eliminated 80% of her $25,000 in student loan debt.
"I'm disappointed to say the very least," she said. "It's a little bit frightening to not really know what the future holds for me financially once I finish my degree in a couple of years. The job market just doesn't look that good right now, even with a Ph.D., so leaving school, there aren't really too many hopes for those of us who need to pay back student loans quickly and whose student loans are accruing interest as we speak."
The White House says 864,000 people from Michigan applied for relief or were deemed automatically eligible for relief from student loans, under the Biden plan that's now been struck down.
The court held that the administration needed Congress’ endorsement before undertaking so costly a program. The majority rejected arguments that a bipartisan 2003 law dealing with national emergencies, known as the HEROES Act, gave Biden the power he claimed.
Loan repayments will resume in October, although interest will begin accruing in September, the Education Department has announced. Payments have been on hold since the start of the coronavirus pandemic more than three years ago.
The forgiveness program would have canceled $10,000 in student loan debt for those making less than $125,000 or households with less than $250,000 in income. Pell Grant recipients, who typically demonstrate more financial need, would have had an additional $10,000 in debt forgiven.
