Biden Administration: SCOTUS Made Mistake, Email Tells Student Borrowers.
The Biden Administration Fights for Student Debt Forgiveness
The Biden administration recently expressed its disagreement with the Supreme Court’s decision on student debt forgiveness in a letter sent to Americans who still owe student loans. The Education Department’s Federal Student Aid office assured borrowers that the administration will continue to fight for debt relief.
The email, signed by Education Secretary Miguel Cardona, stated, ”We believe the Supreme Court got it wrong. While we disagree with the Court’s decision, our Administration will not stop fighting to provide debt relief to borrowers. We will use every tool at our disposal to do so.”
The Supreme Court’s decision has halted the Biden administration’s student debt forgiveness plan. Last month, the Court ruled 6-3 against President Biden’s $430 billion relief policy, stating that the HEROES Act of 2003 does not grant him the authority to cancel billions in student loan debt.
Despite this setback, President Biden remains determined to find alternative ways to deliver relief to hard-working middle-class families. The Education Department has already approved applications for over 16 million borrowers.
Immediate Actions for Debt Relief
- The administration is working on a long-term plan to forgive student loans using ”negotiated rulemaking,” a process that involves the Education Department and a negotiating committee. This plan may take years to implement and could be interrupted by a new president.
- The Saving on a Valuable Education (SAVE) plan will cut monthly payments to $0 for millions of low-income borrowers starting later this summer. Other borrowers will save at least $1000 a year, and the plan will also address ”runaway interest.”
- The Education Department will protect borrowers from the negative consequences of late or partial payments, such as damage to their credit score when the student loan payment pause ends this fall.
Last week, the Biden administration announced the forgiveness of $39 billion in student debt for approximately 804,000 borrowers. This relief is a result of changes to the income-driven repayment programs, which were designed to forgive student debt after 20 or 25 years of payments. However, few borrowers have benefited from this system.
Overall, the Biden administration has forgiven more than $116.6 billion in student loans for over 3.4 million borrowers. While some critics argue that forgiving student loans is unfair to those who have already paid off their loans, the push for broad student debt relief continues.
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