Supreme Court ruling brings bitterness for borrowers counting on student loan forgiveness

Jun 30, 2023, 12:23 PM | Updated: 2:14 pm

Whitney Jean Alim, a 27-year-old educator in Chicago, dreamed of buying a house sooner with the room in her budget from President Joe Biden’s student loan cancellation plan. It would have cut in half the $40,000 she owes on loans taken out for college and a master’s degree.

On Friday, the U.S. Supreme Court struck down the forgiveness plan, dashing the hopes of Alim and millions of other borrowers who were expecting their student debt would be reduced or wiped out entirely.

“Literally this morning, I felt like: ‘Damn, I just lost $20,000,’” said Alim, who learned of the decision from a reporter.

For borrowers around the country, the ruling brought bitterness and frustration, even for those who anticipated the plan’s rejection by the conservative justices. Some fought back feelings of despair.

The student loan forgiveness program would have eliminated $10,000 in debt for those making less than $125,000. Households earning less than $250,000 were also eligible. Pell Grant recipients would have had an additional $10,000 in relief. Forty-three million borrowers would have been eligible, the administration said.

Conservative opponents of the debt relief objected to the cost, estimated at $400 billion over 30 years, and said it was unfair to Americans who had already repaid their debt or did not go to college. Supporters of Biden’s plan said it would boost the economy and narrow the racial wealth gap, given the disproportionate amount of student debt held by borrowers of color.

Brittany Bell Surratt, of Washington, D.C., said she wasn’t surprised at the court’s ruling. But she said the news left her disheartened at the future for Black Americans like herself, especially coming a day after the court ruled against affirmative action in higher education.

“We have been systemically discriminated against in so many ways, and this goes hand in hand with the affirmative action decision,” she said. “That’s a choice, and it’s intentional and deliberate and conscious.”

Bell Surratt, 37, said she was not making payments while When payments resume Oct. 1, she expects to spend about $800 a month. “That’s a mortgage in a lot of places.”

Nicholas Richard-Thompson, a communications coordinator for the mayor’s office in Aurora, Illinois, was at his desk when he saw a student loans news alert flash across his phone. Although he was not surprised by the ruling, it left him feeling defeated.

To finance his education, Richard-Thompson now has nearly $100,000 of debt. As one of the youngest children of older parents, Richard-Thompson said he could not have pursued higher education without taking out loans.

Richard-Thompson said that the recent string of Supreme Court decisions rolling back progress for women, LGBTQ+ communities and people of color were a product of a Democratic Party that has been unwilling to take a bold stance on the issues.

“These are consequences from their politics of the last 20 years,” Richard-Thompson said. “Unless they diverge greatly, it’s going to continue and get worse.”

Advocacy groups supporting debt cancellation condemned the decision while demanding Biden find another avenue to fulfill his promise of debt relief. Biden, who promised debt forgiveness during his presidential campaign, said he he would work to begin a new program designed to ease borrowers’ threat of default if they fall behind over the next year.

Alim said the degrees she and her peers financed with loans have not paid the dividends they had been led to expect.

“I just think that education in America is not really worth it. It’s not becoming worth it,” she said.

When student loan repayments start again in the fall, she’ll have to find $500 a month to make payments on her loans. That money could have gone toward saving to buy a home, she said.

Elizabeth Shoby, a 33-year-old artist in New York City, says the court’s decision deprives her family of financial relief that was much needed. Biden’s plan would have canceled $10,000 of the $70,000 in debt she borrowed for a graduate degree in fine arts.

“My husband and I have a pretty tight budget,” Shoby said. “Our incomes are quite maxed out in terms of our current debts, mortgage, payments, etcetera. And I think both of us know that another $400 a month payment is just — we can’t really foresee right now where that’s going to come from.”

Kerrianne Troesch, a rising junior majoring in communications at Pennsylvania Western University, would have gotten nearly $10,000 in student loan debt cancelled from her freshman year of college alone. Troesch, 20, has already resigned herself to an expected $60,000 in student loan debt after she graduates.

Troesch, who is also an organizer with a nonprofit called Rise that advocates for affordable education options, considered not going to college at all, but felt then her only options would be minimum-wage jobs.

“Damned if you do, damned if you don’t, because you’re going to be racking up debt no matter what,” she said.


The Associated Press education team receives support from the Carnegie Corporation of New York. The AP is solely responsible for all content. ___

Associated Press writers Cheyanne Mumphrey in Phoenix, Claire Savage in Chicago and Collin Binkley in Washington, D.C., contributed to this report. Ma reported from Washington and Lurye from New Orleans.

United States News

Associated Press

Florida prepares for next round of rainfall after tropical storms swamped southern part of the state

FORT LAUDERDALE, Fla. (AP) — Forecasters warned Floridians to prepare for additional flash flooding after a tropical disturbance dumped as much as 20 inches (50 centimeters) of rainfall in the southern parts of the state, with worsening conditions expected Friday. The disorganized storm system was pushing across Florida from the Gulf of Mexico at roughly […]

6 hours ago

Associated Press

1 of 2 abducted Louisiana children is found dead in Mississippi after their mother is killed

JACKSON, Miss. (AP) — A Louisiana woman was found dead in her home Thursday, and her two young daughters were abducted and found hours later in Mississippi — one dead and the other alive, police said. A Louisiana resident who had dated the woman was arrested in Jackson, Mississippi, in connection with the deaths and […]

11 hours ago

Associated Press

Ready to renew your US passport? You can now apply online

WASHINGTON (AP) — There’s an easier way to renew your passport — online. The State Department has opened a trial run allowing a limited number of people to apply for their updated travel documents with a few clicks. You can’t just start anytime — windows will open at midday Eastern time each day and then […]

12 hours ago

Associated Press

You don’t think corn dogs are haute cuisine? These chefs, using alligator sausage, beg to differ.

NEW ORLEANS (AP) — Stefani De Palma, an award-winning chef and head of the a team vying to represent the Americas in a French culinary competition in January, knew she wanted her team’s work to feature flavors of her native California. The challenge at the Bocuse d’Or Americas competition this week in New Orleans was […]

12 hours ago

Associated Press

Attorney charged in voting machine tampering case announces run for Michigan Supreme Court

LANSING, Mich. (AP) — An attorney charged in connection with an effort to illegally access and tamper with voting machines in Michigan after the 2020 election said Thursday that he’s running for the state’s high court. Republican Matthew DePerno, a supporter of former President Donald Trump, made the announcement on the social platform X. “After […]

12 hours ago

Follow @ktar923...

Sponsored Content by Collins Comfort Masters

Here's how to be worry-free when your A/C goes out in the middle of summer

PHOENIX -- As Arizona approaches another hot summer, Phoenix residents are likely to spend more time indoors.

Sponsored Articles


Sanderson Ford

3 new rides for 3 new road trips in Arizona

It's time for the Sanderson Ford Memorial Day sale with the Mighty Fine 69 Anniversary, as Sanderson Ford turned 69 years old in May.


Day & Night Air Conditioning, Heating and Plumbing

Beat the heat, ensure your AC unit is summer-ready

With temperatures starting to rise across the Valley, now is a great time to be sure your AC unit is ready to withstand the sweltering summer heat.


Midwestern University

Midwestern University Clinics: transforming health care in the valley

Midwestern University, long a fixture of comprehensive health care education in the West Valley, is also a recognized leader in community health care.

Supreme Court ruling brings bitterness for borrowers counting on student loan forgiveness