{"id":29811,"date":"2023-06-30T17:16:12","date_gmt":"2023-06-30T21:16:12","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/biden-announces-plan-b-for-student-loan-forgiveness-key-details\/"},"modified":"2023-06-30T17:16:13","modified_gmt":"2023-06-30T21:16:13","slug":"biden-announces-plan-b-for-student-loan-forgiveness-key-details","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=29811","title":{"rendered":"Biden Announces \u2018Plan B\u2019 For Student Loan Forgiveness: Key Details"},"content":{"rendered":"
\n

President Joe Biden spoke publicly on Friday following the Supreme Court\u2019s ruling striking down his student loan forgiveness plan. That plan would have fulfilled one of his central campaign promises to cancel $10,000 or more in federal student loan debt. But the Court\u2019s conservative majority ruled that the program was an improper overreach of executive authority.<\/p>\n

Biden told reporters his administration is working on developing a new student loan forgiveness plan under a different legal authority.<\/p>\n

Here\u2019s the latest.<\/p>\n

Supreme Court Strikes Down Biden\u2019s Student Loan Forgiveness Plan<\/h2>\n

In a 6-3 ruling, the Supreme Court ruled in Biden v. Nebraska<\/em> that President Biden did not have authority to enact such a massive student loan forgiveness plan. The administration had relied on the HEROES Act of 2003, a statute that provides broad authority to the Education Department to take action in response to a national emergency. But the Court interpreted the scope of the HEROES Act narrowly, and concluded that under the so-called Major Questions Doctrine, Congress must have explicitly authorized mass student debt relief for it to be permissible.<\/p>\n

\u201cThe HEROES Act provides no authorization for the Secretary\u2019s plan even when examined using the ordinary tools of statutory interpretation\u2014let alone \u2018clear congressional authorization\u2019 for such a program,\u201d wrote Chief Justice John Roberts on behalf of the Court\u2019s conservative majority.<\/p>\n

<\/fbs-ad><\/p>\n

The Court\u2019s three liberal justices, led by Justice Elena Kagan, wrote a spirited dissent. \u201cIn every respect, the Court today exceeds its proper, limited role in our Nation\u2019s governance,\u201d arguing that the majority used faulty logic to conclude that the state challengers had standing to sue, and then proceeded to misread the clear and unambiguous text of the HEROES Act.<\/p>\n

Biden Details Backup Plan For Student Loan Forgiveness<\/h2>\n

In public remarks on Friday, President Biden defended his administration\u2019s actions to provide debt relief to student borrowers, and promised that he would work around today\u2019s Supreme Court ruling.<\/p>\n

\u201cI know there are million of Americans who feel disappointed, discouraged, and a little bit angry\u201d over the Supreme Court\u2019s decision, he said. \u201cI do too… I believe the Supreme Court\u2019s decision today was wrong.\u201d<\/p>\n

Biden touted the administration\u2019s other student debt relief achievements, including increasing Pell Grants and reforming Public Service Loan Forgiveness, which provided student loan forgiveness to over 600,000 borrowers. Biden also referenced his proposed new income-driven repayment plan, which may reduce student loan payments by more than fifty percent for undergraduate borrowers as compared to current options. Further details on that plan are expected in the coming weeks.<\/p>\n

But most notably, Biden indicated his administration will move forward on a so-called backup option for student loan forgiveness. Using a provision of the Higher Education Act that allows the Education Department to \u201ccompromise and settle\u201d federal student loan debt, Biden said his administration will work on establishing a new student loan forgiveness path for borrowers.<\/p>\n

\u201cI’m announcing a new path to provide student debt relief to as many borrowers as possible, as quickly as possible, grounded in the Higher Education Act,\u201d he said. \u201cJust moments ago,\u201d Education Secretary Miguel Cardona \u201ctook the first official step to initiate this new approach.\u201d He did not provide details, but said he said the Education Department is taking the first steps to develop regulations for a new student debt relief program.<\/p>\n

\u201cThe Court closed one path today,\u201d Biden said, \u201cBut we\u2019re working on another.\u201d He said it will take time to establish the new program. The Education Department must first hold negotiated rulemaking sessions allowing for public comments and stakeholder input as officials consider what the new program will look like.<\/p>\n

Biden also said he would create a temporary, 12-month \u201con-ramp\u201d to repayment. Biden is prevented from extending the student loan pause again under a provision of the debt ceiling bill he signed earlier this month. And while his \u201con-ramp\u201d initiative would not really be an extension of the student loan pause \u2014 monthly payments would be due, and interest will start accruing again after August \u2014 borrowers will not face any negative consequences for missing payments for the first year after repayment resumes.<\/p>\n

Advocates Urge Biden To Not Give Up On Student Loan Forgiveness<\/h2>\n

Biden\u2019s remarks echoed calls by advocacy groups and progressives in Congress to reject the Supreme Court\u2019s reasoning and press on with student loan forgiveness initiatives, including using other legal tools to establish new relief, such as the compromise and settlement authority provided by the Higher Education Act.<\/p>\n

\u201cToday\u2019s 6-3 Supreme Court decision is a devastating blow for tens of millions of low-income and working class Americans who were hoping for relief from the severe financial stress they face due to a mountain of student debt,\u201d said Sen. Bernie Sanders (I-VT
\n VT
\n <\/fbs-ticker>) in a statement on Friday. \u201cI am urging the Biden Administration to implement a Plan B immediately to cancel student debt for tens of millions of Americans who are struggling to pay the rent, put food on the table, and pay for the basic necessities of life. Despite this legally unsound Supreme Court decision, the President has the clear authority under the Higher Education Act of 1965 to cancel student debt. He must use this authority immediately\u201d<\/p>\n

\u201cIn the face of the Supreme Court’s unjust decision, the responsibility to fight for student debt relief falls squarely on the President’s shoulders. This is a moment that demands swift action,\u201d said Natalia Abrams, President and Founder of the Student Debt Crisis Center in a statement on Friday. \u201cThe President possesses the power, and must summon the will, to secure the essential relief that families across the nation desperately need.\u201d<\/p>\n

\u201cThe same Supreme Court that overturned Roe now refuses to follow the plain language of the law on student loan cancellation,\u201d said Sen. Elizabeth Warren (D-MA). \u201cThis fight is not over. The President has more tools to cancel student debt \u2014 and he must use them.\u201d<\/p>\n

Further Student Loan Forgiveness Reading<\/strong><\/h2>\n

The Student Loan Pause Is Actually, Really Ending \u2014 6 Key Dates And Details<\/p>\n

6 Key Student Loan Forgiveness And Repayment Dates To Write Down Now<\/p>\n

30 Million Borrowers May Face New Problems As Student Loan Pause Ends<\/p>\n

4 Big Student Loan Updates When Payments Resume (And They Resume Soon)<\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

President Joe Biden spoke publicly on Friday following the Supreme Court\u2019s ruling striking down his student loan forgiveness plan. That plan would have fulfilled one of his central campaign promises to cancel $10,000 or more in federal student loan debt. 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