Supreme Court's student loan decision will lower US deficit according to new White House projection

WASHINGTON (AP) — The Supreme Court ruling that upended President Joe Biden's plan to forgive student loan debt changed his budget math, modestly lowering the projected deficit for this year, his budget office reported Friday.

The Office of Management and Budget's Mid-Session Review represents the administration's first recalculations of the loan program since the court's June decision, which will affect millions of borrowers.

The court decision initially was expected to reduce the deficit by $400 billion. But a portion of that money will instead be used to pay for a smaller income-driven loan repayment program that goes into effect this summer, according to the report.