The Supreme Court made another bombshell decision Friday, rejecting President Joe Biden’s student debt relief plan.
While the country’s top court has finally settled the hot-button issue with this move, Americans remain sharply divided over whether or not to foot the bill.
In New York, many students grumbled that they felt they missed out on a free degree, while Wall Street workers were relieved that their efforts to pay off their loans were not in vain.
“I think student loan forgiveness is a two-sided coin,” said Matthew Polo, 19. “For everyone who gets (the money), there’s going to be another person who worked a lot harder to pay off their loans.”
The landmark SCOTUS decision shattered Biden’s $400 billion plan to forgive $10,000 of debt to borrowers with incomes below $125,000 and up to $20,000 to borrowers with Pell grants.
Matthew Polo, 19, described student loans as “a double-sided coin”
From iconic Washington Square Park to the Financial District, walked the streets of Manhattan to gauge reactions to the Supreme Court’s historic ruling.
For many New Yorkers, the ruling spelled the end of their hopes of becoming debt-free at the stroke of a pen.
Others, however, claimed it was the system that left students in unsustainable debt that should have been replaced, rather than the government paying off existing bills.
“You have to keep the taxpayers in mind,” continued Matthew, a student speaking at the foot of the World Trade Center.
“It’s difficult for those[who have paid off their debts]because they’ve put so much time and energy into it.”
There’s obviously a societal benefit in enabling people who would otherwise not have received an education – I think it’s a matter of scale.
“I don’t think there is a definitive answer, but as a student I have to keep thinking.”
Puja Mondal, 19, said she hopes a new plan will be put in place to help other students who are struggling
Thanks to a corona pandemic halt, millions of Americans have not had to repay their loans for over three and a half years.
But with borrowers resuming payments in October and interest rates starting in September, students feel like they’ve missed out.
“As a student receiving credit, I can understand the low-income minority people who need this extra support for their education,” added Matthew’s friend Puja Mondal, 19.
“The student loan forgiveness program should exist. It helps many students like me, my family and friends who complete their studies and gives them a great opportunity for their careers.”
“I think by the time you finish this program you should have a replacement for those who are still in college and need help.”
“But I definitely think there should be refunds,” she added. “But it’s a two-sided coin, there are pros and cons, and it’s something that needs to be discussed in order to get better.”
A recent graduate and teacher admitted she was “looking forward” to the loan forgiveness, but felt reimbursements for repayment were appropriate
A young graduate, who did not give her name but said she recently graduated as a teacher, admitted she was looking forward to getting “some kind of forgiveness” on her loans.
“The extra money would have helped,” she said, adding that she’s working on a plan to pay off her loans piecemeal. Having personally attempted to pay off her debts, she would be “upset” by watching others pay them off for free.
“I would understand why other people would be upset,” she continued. “I think some form of refund, some kind of refund would be nice.”
Her classmate, who said he gets by on scholarships, added that student loan forgiveness may be necessary at this moment due to America’s flagging economy.
He added: “People need help now because schooling is really expensive and they should consider that – both to reduce student debt in general and to help people.”
Shane Morgan, 41, said he would “feel deep resentment” if he paid off his loans before others let them pay off for free
Shane Morgan, 41, of Manhattan’s Financial District, said if he paid off his debts while others let them pay off for free, he would “feel deep inside resentment.”
Though Shane said he would be a little upset if he paid off his loans when others didn’t, he felt there would be some benefits in approving the plan.
“It would help the whole economy,” he said. “It will keep people out of debt, which will lead to more spending and a better economy for everyone.”
As a Canadian, Shane admitted he “has no say in the game” but argued that the list of decisions the Supreme Court has made since it turned to a 6-3 conservative supermajority means he ” lost legitimacy”.
“The Supreme Court used to be the gold standard of sentencing, but now I feel like it’s too partisan and too political,” he added.
A University of Pittsburgh graduate student said he advocates paying back loans even when others are losers, saying, “Just because you haven’t benefited from something good doesn’t mean others can’t.”
Bruce Harrow criticized the for-profit higher education system, saying that “we just shouldn’t let students walk out of school with thousands and thousands of dollars in debt.”
A University of Pittsburgh graduate criticized the Supreme Court for its decisions as it has become a conservative supermajority.
He added that even if he owed thousands to pay back, he wouldn’t hold grudges because “just because you haven’t benefited from something good doesn’t mean other people can’t.”
In his speech in New York’s Washington Square Park, Bruce Harrow criticized the system, which leaves students in enormous debt, which in turn means that taxpayers have to foot the bill instead.
“We just shouldn’t let students walk out of school with thousands and thousands of dollars in debt, that’s just ridiculous,” he added.
He said he personally knows people tied up in $100,000 in debt but believes repayments shouldn’t be made because “the water is under the bridge.”
The Supreme Court has rejected President Joe Biden’s $400 billion student loan forgiveness plan in another bombshell decision. The judges ruled 6-3 against Biden’s controversial plan to pay off the debts of around 20 million Americans
Joe Biden’s student loan forgiveness program had been held up in a lawsuit since November
The comments came as the Supreme Court made a number of crucial decisions in favor of the Conservatives on the last day of its term.
In addition to enacting student loans, the judges, who are 6-3 in favor of the conservative judges, have also done away with the historic Affirmative Action policy.
The decision effectively removed the college’s ability to use race as a criterion for admissions, sparking a backlash from Biden.
As for student loan forgiveness, Biden’s plan would have eliminated the $10,000 debt for borrowers with incomes less than $125,000 and up to $20,000 for those on Pell scholarships.
His plan would have cost taxpayers $400 billion, but after it was initially stopped in November, it has spent months snaking through the legal system.
The move was contested by six Republican states and two borrowers, who argued Biden should have sought congressional approval for a plan that was draining significant taxpayer dollars.
In his majority opinion, Chief Justice John Roberts agreed, saying the measure “requires clear language from Congress before a Secretary of Education can unilaterally transform large parts of the American economy.”