WASHINGTON, D.C. – In a 6-3 decision the United States Supreme Court struck down President Biden’s student loan giveaway to higher income Americans on June 30, 2023. The executive order, announced by President Biden on August 24, 2022, bypassed Congress’s sole constitutional authority over spending and was estimated to cost the federal government $400 billion while providing taxpayer funded benefits to some of the highest income earners.
Ways and Means Chairman Jason Smith (MO-08) released the following statement in response to the Supreme Court’s decision:
“President Biden’s plan would have been costly and inflationary to all Americans while providing benefits to the already well off. I am thankful the Supreme Court upheld the rule of law and reaffirmed Congress’s authority over spending by striking down this blatant abuse of executive power that would have spent upwards of $400 billion.
“If this executive order had been allowed to move forward, every American taxpayer – whether they have student loans or not – would be on the hook to foot the bill. This shifts the tax burden from higher income Americans to working class families who are the ones truly in need of relief in the Biden economy. As the Chairman of the Ways and Means Committee, I am focused on shifting Washington’s priorities from these handouts to the wealthy to instead pro-growth policies and tax relief that will actually benefit working class Americans, farmers, and small businesses.”
Student Loan Cancellation is a Giveaway
- 87 percent of adults without student loans would be forced to pay for the 13 percent of adults who chose to take on loans.
- 57 to 65 percent of the benefit from canceling student loan debt and extending the pause on loan repayment would have gone to those in the top half of the income spectrum.
- 56 percent of all student loan debt is owed by the 14.3 percent of individuals with advanced degrees.
Mass Student Loan Forgiveness Fails to Address the Problems Americans are Facing
- $400 billion in student loan forgiveness would only add to inflation and a majority of that would have been paid for by the Americans without student loans who wouldn’t see any benefit from the Biden student loan giveaway.
- Mass student loan forgiveness fails to address the rising cost of higher education and would only worsen the problem.