Confident, but With a Plan B? Cardona After the Student Loan Ruling: 'I Think It's the Wrong Decision' (June 30, 2023)

Hours after the Supreme Court struck down President Joe Biden’s student loan plan, a reporter asked Education Secretary Miguel Cardona how surprised the White House really was. “And for months, the White House had said they felt confident about the law being on their side. But then also, of course, you guys were preparing different scenarios, as we’ve now learned. So what were you bracing for today? How surprised were you both about this outcome?” the reporter asked [1].

“Or is this really what you expected, given some of the work that was put into the contingency?” [1]

Cardona started reading from the law. “Look, let me read: The Secretary has the right to ‘waive or modify any statutory or regulatory provision’ in the form deemed appropriate by the Secretary to offset national emergency. That was the legal authority,” he said [1].

“What I want to remind folks is we got a decision from SCOTUS. I thought — I think it’s the wrong decision,” Cardona said. “Within hours, we started the regulatory process. We’re not going to stop fighting.” [1]

Then he left. “The Secretary has to go because he has to catch a flight,” press secretary Karine Jean-Pierre said [1].

The video above shows the June 30, 2023, White House briefing. Quotes are from the official transcript published by the American Presidency Project [1].

”Why Didn’t You Just Use That in the First Place?”

The first question went straight at Plan B. “If the HEROES Act was on legally scurrilous footing, this might be even more so. And if — if you’re more secure that this is a legal route to do it, why didn’t you just use this in the first place?” a reporter asked [1].

“We believe the Supreme Court got it wrong today. We believe the HEROES Act does give me the authority,” Cardona said [1].

“But if — if you think that’s a better way to do it, why didn’t you just use that in the first place?” the reporter pressed. “We believe that the HEROES Act pathway was quicker and we had the authority to do that,” Cardona answered [1].

How long would the new route take? “Well, certainly not weeks. It’s going to be months,” said Bharat Ramamurti, deputy director of the National Economic Council [1]. “I don’t know if the Secretary mentioned this, but the first step is going to be a public hearing. That’s going to happen in July,” Ramamurti said [1].

”They Did the Same for the HEROES Act”

Asked how the administration knew the new route was legally sound, Cardona pointed to the lawyers. “Lawyers from the Department of Education, from the White House, from the Department of Justice all reviewed this plan. They weighed in and believe that it was legally available,” he said [1].

“I should be clear that they did the same for the HEROES Act. And obviously, we ran into a Supreme Court that had a different view of things — frankly, a view that we believe is out of step with where the law is,” Cardona said [1].

”The Court Substituted Itself for Congress”

In his opening statement, Cardona went after the Court and Republicans by name. “Today, the Court substituted itself for Congress,” he said [1].

“And many had no problems accepting millions of dollars in forgiven pandemic loans, like Senator Markwayne Mullin from Oklahoma had more than $1.4 million in pandemic loans forgiven,” Cardona said. He also named Rep. Brett Guthrie of Kentucky and Rep. Marjorie Taylor Greene of Georgia [1].

He argued the plan was not for the rich. “Nearly 90 percent of relief would have gone to borrowers making less than $75,000 a year,” Cardona said [1].

”This New Plan Is Called … SAVE”

Cardona also rolled out a new repayment plan. “Number two, today, we’re rolling out the most affordable income-driven repayment plan ever. This new plan is called Saving on a Valuable Education — SAVE,” he said. “It’ll cut payments to zero dollars for millions of people making less than $33,000 a year.” [1]

But he had a message for borrowers, too: “Borrowers who can make payments should.” [1]

By the Numbers

43 million: people Cardona said “were waiting for some relief” [1].
$1.4 million: forgiven pandemic loans Cardona said Sen. Mullin received [1].
$66 billion: targeted loan forgiveness Cardona said the administration had approved [1].
$342 billion: what the Trump Education Department later said SAVE would have cost taxpayers over 10 years [2].
7 million+: borrowers the department said were stuck in SAVE limbo [2].

What Happened Next

SAVE was shut down. On Dec. 9, 2025, the Education Department announced a proposed settlement with Missouri “that would end the Biden Administration’s illegal ‘Saving on a Valuable Education’ (SAVE) Plan.” The department called SAVE “the Biden Administration’s third and final attempt at mass federal student loan forgiveness” and said “it was blocked repeatedly by both district and appeals courts” [2].

“The law is clear: if you take out a loan, you must pay it back,” said Under Secretary of Education Nicholas Kent [2].

“Our Office fought for hardworking Americans who were being preyed upon by Biden Administration bureaucrats, and we won in court every time,” said Missouri Attorney General Catherine Hanaway [2].

For the Supreme Court’s ruling that morning, see HYGO News’ page on Biden v. Nebraska. For the Afghanistan exchange at the same briefing, see the page on the Taliban remark.