Biden devises secret student loan forgiveness plan to sidestep SCOTUS decision.

Supreme Court Throws Out Biden’s Student Loan Forgiveness Plan, But He’s Not Giving Up

Just hours after the Supreme Court ruled against President Joe Biden’s proposal for student debt forgiveness, Biden made it clear that he’s not backing down. In a statement, he expressed his disagreement with the court’s decision and vowed to continue fighting for borrowers in need.

Although one path has been closed, Biden assured the public that a new plan is already in the works. He emphasized the urgency of finding a solution, particularly for those at the lower end of the economic scale.

“Today’s decision has closed one path, now we’re going to pursue another,” Biden declared.

Last year, Biden called for student loan debt relief of up to $20,000 for eligible individuals. However, with the court’s ruling, a new approach is necessary. According to documents released by the White House, Plan B is currently being developed.

The plan involves utilizing the Secretary of Education’s authority under the Higher Education Act to create an alternative path to debt relief for working and middle-class borrowers. This process, known as negotiated rulemaking, could take up to two years to complete.

While some argue that the executive branch lacks the unilateral authority to engage in mass student debt cancellation, the White House remains undeterred. They believe that the rulemaking process, combined with other initiatives, will provide much-needed support to student loan borrowers.

Plan B: Affordable Repayment and an On-Ramp to Repayment

As the rulemaking process moves forward, the Department of Education has finalized an affordable repayment plan. This plan, which will be available this summer, aims to reduce the financial burden on borrowers. Many individuals will not have to make monthly payments, saving them over $1,000 per year.

The plan also introduces the Saving on a Valuable Education (SAVE) plan, which allows all student borrowers in repayment to enroll. This enrollment opportunity will be available later this summer, before any monthly payments are due.

Additionally, the Education Department is implementing a 12-month “on-ramp” to repayment. This period, from October 1, 2023, to September 30, 2024, ensures that financially vulnerable borrowers who miss monthly payments are not penalized.

Concerns and Criticisms

Despite these efforts, there are concerns about the alternative plan. Critics argue that the student loan forgiveness plan to sidestep SCOTUS decision.”>proposed income-driven repayment rule could have long-term consequences. It may significantly reduce monthly payments for most borrowers and shorten the time to forgiveness. However, it could also permanently write off the debts of millions of borrowers, with an estimated cost of at least $138 billion.

Some worry that if the Education Department has the power to set repayment terms without proper appropriations, it undermines the legislative power of Congress and threatens the integrity of the student loan system.

As the debate continues, it is clear that the fight for student loan relief is far from over. The Supreme Court’s ruling may have halted one plan, but Biden and his administration are determined to find a solution that addresses the needs of borrowers and upholds the Constitution.

Source: The Western Journal

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