HARTFORD, Conn. — The U.S. Supreme Court has blocked President Joe Biden's plan to forgive student loan debt in a 6-3 decision.
Under the HEROES Act, the $400 billion plan would have provided debt cancellation to students borrowing funds for their higher education. Debtors would have been forgiven $10,000 if they were making under $125,000, and an additional $10,000 for Pell Grant recipients.
As soon as the decision was made public, Connecticut's lawmakers and state and local officials were quick to react to the news.
Gov. Ned Lamont said he condemns the decision and that it's a "crushing blow to over 200,000 hardworking Connecticut residents" who were already approved to get the proposed debt forgiveness. Lamont said that state programs will continue to help Connecticut families with their student debt. His statement reads in part,
“Although the U.S. Supreme Court has blocked federal assistance, Connecticut offers a generous tax credit to employers that provide student loan assistance and a debt-free community college program that more than 10,000 students have already taken advantage of. We also have targeted relief programs for teachers, nurses, and social workers. I encourage all employers to step up to the plate and take advantage of state incentives to help pay down their employees' student loans."
U.S. Senator Richard Blumenthal (D-Conn.) said the Supreme Court's ruling "condemns a generation of American student loan borrowers to a lifetime of financial insecurity."
"I am mystified and outraged, but sadly not surprised, that the activist conservative Justices have once again substituted their policy preferences for legal interpretation. I look forward to working with the Biden Administration on alternative paths forward to support student borrowers.," Blumenthal said in a statement in part.
Connecticut Attorney General William Tong said the court's decision is "horrible news" for the thousands of Connecticut families that are facing student debt.
"This decision will cause far-reaching economic harm nationwide as millions of borrowers divert their paychecks and savings to loan payments that should have been forgiven,” said Tong. “I continue to believe the Biden Administration was well within its authority to cancel this debt, and acted responsibly to confront the possibility of looming default as the pandemic pause in repayments soon comes to an end. The states that torpedoed this relief are going to have to answer to all the families across the country who are thousands of dollars poorer today thanks to their partisan grandstanding.”
U.S. Rep. John Larson (Conn. - 01) said the Supreme Court has taken away the "sigh of relief" that Biden's plan would have provided to Connecticut's families.
“I am deeply disappointed in today’s decision from the Court and will continue to work with my colleagues in Congress and the President to not only forgive a portion of student debt, but to ensure every American can access the education they need without taking on mountains of loans. We will continue to pursue a common-sense approach of service to your country for loan forgiveness. For every year you serve your country, we can offer two years of in-state tuition or loan forgiveness by passing my ACTION for National Service Act,” Larson said.
U.S. Rep. Rosa DeLauro (Conn. - 03) is also "deeply disappointed" in the ruling, releasing a statement that says in part,
“I am deeply disappointed in this ruling – particularly as the Court faces increasing scrutiny on its legitimacy as reports show conservative justices receiving lavish travel and gifts from GOP billionaire megadonors who have cases before the court. While they rule in favor of billionaires and strike down programs that would help working Americans, there is one unescapable reality that millions of Americans face: they are living paycheck to paycheck. They have not seen a pay raise in years. They are struggling to take care of themselves and their families. And we in government have the tools to improve their lives."
Connecticut State Reps. Corey Paris (D-Stamford), Christine Palm (D-Chester/Essex/Deep River/Haddam), Eleni Kavros DeGraw (D-Avon/Canton), and Gary Turco (D-Newington/New Britain released a joint statement that reads in part:
"It is shameful that in 2023, our Supreme Court favored lending institutions over ordinary Americans trying desperately to be responsible borrowers and active participants in the American economy. The imbalance caused by the double-punch of inflated education costs and wage stagnation makes it mathematically impossible for many borrowers ever to pay off their loans. There is no denying that the pandemic set these graduates back even further, and our Supreme Court has shown no interest in correcting decades of irreversible damage from the harmful debt-to-income ratio. Instead, the Supreme Court aims to create a permanent underclass."
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