What the Supreme Court's rejection of student loan relief means for borrowers

In one of the most anticipated decisions of its current term, the U.S. Supreme Court has struck down President Biden's sweeping plan to discharge some or all federal student loan debt for tens of millions of Americans.

In a 6-3 decision, the high court ruled that the Biden Administration did not have authority under a 2003 federal law to forgive hundreds of billions of dollars of student debt.

"The HEROES Act allows the Secretary [of Education] to 'waive or modify' existing statutory or regulatory provisions applicable to financial assistance programs under the Education Act," the ruling states, "but does not allow the Secretary to rewrite that statute to the extent of canceling $430 billion of student loan principal."

In a decision written by Chief Justice John Roberts, the court ruled in favor of Missouri and five other states, who had argued that the Administration had overstepped its authority to forgive some student loans.

The "modifications" by the Department of Education, Roberts wrote, "created a novel and fundamentally different loan forgiveness program" that "expanded forgiveness to nearly every borrower in the country."

The high court's decision comes after a tumultuous year for federal student loan borrowers, who were told in August by President Biden that the U.S. government would cancel up to $20,000 of debt