The Supreme Court has ruled that the Biden administration exceeded its authority when it tried to forgive student loans under the HEROES act.
The Secretary of Education said that the HEROES act gave the administration the ability to cancel $430 billion in student loan principal.
The Supreme Court said that he was mistaken.
The court ruled that of the six states that sued to stop the cancellation, at least Missouri had standing because the state is tied to MOHELA, a nonprofit government corporation created by Missouri to participate in the student loan market.
And since Missouri stood to lose some $44 million in income, the court could rule on the case.
Chief Justice Roberts used that opportunity to thoroughly humiliate Secretary of Education Miguel Cardona.
He wrote:
"The Secretary asserts that the HEROES Act grants him the authority to cancel $430 billion of student loan principal. It does not. We hold today that the Act allows the Secretary to ‘waive or modify' existing statutory or regulatory provisions applicable to financial assistance programs under the Education Act, not to rewrite that statute from the ground up."
It sure is nice to have a Supreme Court that's willing to recognize the check and balances in our nation. If Congress wants to forgive student loans, they're going to have to pass a law to do it. The executive branch can't just make up its own laws anymore, and the court isn't doing it anymore.
Senator Elizabeth Warren, a law professor and not even a little Native American, was totally convinced Biden had the authority to forgive student loans.
She had this reaction to the news:
What comes next?
Interest on student loans resumes in September, and payments resume in October.
The average student loan payment is $393 per month, and there are 43 million borrowers, which roughly means about $19 billion less in American spending every month.
One can only imagine what that will do to inflation and the stock market.
We're about to pay the consequences for Democrats paying for votes.
