The Supreme Court has struck down President Joe Biden's $400 billion student loans forgiveness plan in another bombshell decision.

The justices ruled 6-3 Biden's controversial plan to wipe out debts for 26 million Americans at taxpayers' expense was unconstitutional and an overreach of his executive power. 

The landmark ruling on the final day of the Supreme Court's term comes 24 hours after the justices decided colleges could no longer use race as a consideration in admissions in a case that sparked backlash from Biden.

The plan would have eradicated $10,000 in debt for borrowers earning less than $125,000 and up to $20,000 for those with Pell Grants. 

But it was challenged by six Republican states and two borrowers who argued Biden should have sought approval from Congress for a plan using substantial taxpayer funds. 

Chief Justice John Roberts agreed and said in the majority opinion that a move 'requires that Congress speak clearly before a Department (of Education) Secretary can unilaterally alter large sections of the American economy.' 

President Biden called the decision 'disappointing' and 'wrong' and vowed to fight back in a statement released hours after the ruling came down.

'This fight is not over. I will have more to announce when I address the nation this afternoon. 

'My Administration's student debt relief plan would have been the lifeline tens of millions of hardworking Americans needed as they try to recover from a once-in-a-century pandemic.