Press Releases
06/30/2023
Attorney General Tong Statement on Supreme Court Decision Blocking Student Debt Relief
(Hartford, CT) – Attorney General William Tong today released a statement following the U.S. Supreme Court decision in Biden v. Nebraska blocking the Biden Administration’s targeted plan to cancel some student loan debt.“This is horrible news for hundreds of thousands of Connecticut families staring down billions of dollars in 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 Attorney General 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.”
After more than three years, a pandemic-era pause on federal student loan payments is set to expire no later than August 30. In 2022, to ensure that borrowers did not face catastrophic defaults at the conclusion of that forbearance, the Biden Administration announced plans to grant up to $10,000 in debt relief for borrowers under certain income thresholds, and up to $20,000 in debt relief to borrowers who met those income thresholds and received a Pell Grant in college. But six Republican attorneys general challenged the Biden Administration’s authority to execute the plan. Today, the United States Supreme Court upheld their challenge.
Attorney General Tong filed an amicus brief supporting the Biden Administration, arguing that U.S. Secretary of Education Miguel Cardona has the authority under the HEROES Act to provide limited debt cancellation to prevent student loan borrowers from experiencing grave financial hardship as a result of the COVID-19 pandemic.
As of 2022, close to 500,000 Connecticut residents collectively owed $17.5 billion in student loans, with the average borrower owing more than $35,000. Connecticut ranks 25th in the country in average amount owed per borrower.
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Media Contact:
Elizabeth Benton
elizabeth.benton@ct.gov
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