MDC Statement on Supreme Court Student Debt Decision
The Supreme Court of the United States, on June 30, 2023, struck down President Biden’s student loan one-time forgiveness program. The Court ruled that the Administration exceeded its authority to use emergency powers for forgiving student loan debt. The ruling does not prohibit the President or Congress from forgiving student debt through other means.
As a national partner of the Southern Partnership to Reduce Debt (SPRD), MDC is keenly aware that this ruling is a major setback for the 40 million student debtholders nationally who would have benefitted from this relief. Nearly 13.6 million of those debtholders live in the 13 Southern states served by MDC. Southerners and people of color are disproportionally burdened by student loans. MDC also knows, through its research, that reducing student loan debt closes racial wealth gaps and encourages borrowers receiving relief to start new businesses, take public service jobs, and pursue careers with more opportunities for development and growth. These outcomes advance upward economic mobility and generate greater economic prosperity for communities.
Shifting to what the ruling means for student debtholders, the pandemic-era pause on student debt payments ends and interest resumes on September 1. Loan payments resume on October 1, 2023. President Biden announced, after the Supreme Court decision, that his Administration will pursue another route for broad student loan forgiveness. In the interim, there are other relief options available to student debtholders that remain unaffected, including:
MDC is sponsoring and supporting the North Carolina Student Debt Relief Coalition. The Coalition’s member organizations will share curated and accurate information about student debt relief options with their constituencies who might hold student debt.
If you and your organization are interested in joining the North Carolina Coalition, please complete this form and we will invite you to the Coalition’s next meeting. If you and your organization are interested in sponsoring a similar coalition in another Southern state, please complete this form and we will follow up with you.