SCOTUS decision on student loan plan draws reaction across Triangle
RALEIGH, N.C. (WTVD) -- The email that Viren Shah received from the U.S. Secretary of Education last year stating he was eligible for student loan relief now means nothing.
"I'm a little upset," Shah said. "Though it wouldn't wipe completely away my debt, it would have still made a significant impact."
The United States Supreme Court struck down the Biden Administration's student loan debt forgiveness program. The program would have canceled up to $20,000 in federal student loans for millions of Americans. The president said the burden is especially heavy on Black and brown borrowers who on average have less family wealth to pay for it.
But after a 6-3 decision, written by Chief Justice John Roberts, the Supreme Court ruled the Department of Education exceeded its authority when it moved to wipe out more than $400 billion in federal student loan debt.
Shah has about six figures in student loan debt.
"A loan could be very simple but with interest that accumulates, it grows to be something that feels like you can't pay it back," he said.
Sherry Moston graduated from Fayetteville State University in 2001, racking up more than $20,000 in student loans. She went on to become an educator.
"If you take out the debt, it's a debt. It has to be paid back and it's not anyone else's place to pay it back for you," she said. "On a very small salary, I had to pay off my debt of which I did because it was my debt."
One expert said student-loan debt can keep borrowers from achieving financial freedom and building wealth.
"One hundred thousand dollars worth of student debt is $100,000 you can't afford in your mortgage payment," said Donna Bass with the Company Realty Group. "It hinders people greatly."
The student loan pause put in place during the COVID-19 pandemic comes to an end. The payments resume in October.
MORE: Student loan payments to restart in October after 3-year COVID pause. Here's what to know
