High court's cancelation of student debt relief affecting 864k Michigan residents

A recent decision by the U.S. Supreme Court to overturn President Biden's plan to relieve $20,000 in student debt will have major ramifications for much of the state of Michigan.

According to the White House, 864,000 residents in Michigan were eligible to receive student loan relief under the president's plan. It was available to anyone earning less than $125,000 a year. At the time, 566,000 fully-approved applications had been issued to loan service providers.

The three justices who dissented argued the states that sued the relief program lacked standing, instead calling them a "classic ideological plaintiff."

However, Chief Justice John Roberts, writing for the majority, said the Biden Administration had exceeded its authority in wiping out $400 billion in relief.

The Michigan College Access Network which seeks to expand availability of college to students in the state called the court's decision a "massive disappointment."

"In the less than four weeks that the student debt relief application was open before the program was paused by legal challenges, 864,000 Michiganders applied or were deemed automatically eligible for relief," said Director Ryan Fewins-Bliss in a statement. "This represents millions of dollars that could have been invested in communities across the state. Individuals and families who could have used this money to purchase cars, buy a house or pay for childcare will have to resume payments on loans that would have been forgiven."

Student debt payments have been on hold since the pandemic in 2020 to accommodate for special circumstances and free up funds for borrowers during the health crisis. Payments were expected to resume in the fall.

Biden had promised during his campaign to the presidency in 2020 that he would pass some kind of student debt relief. He unveiled the plan last August before lower courts passed injunctions that paused the program.

The president offered alternative debt relief plans here.