President Joe Biden faced a setback when the Supreme Court struck down his initial student debt relief plan. However, the president remains committed to providing relief to borrowers and has devised Biden’s new plan for student debt cancellation.
Biden’s new plan for student debt will be based on the Higher Education Act. (Photo: Reuters)
Biden’s New Plan For Student Debt After Supreme Court Ruling
In this article, we will delve into the details of Biden’s new plan for student debt.
The specific details of Biden’s new plan for student debt cancellation plan have yet to be disclosed. The previous plan struck down by the Supreme Court aimed to forgive $10,000 for borrowers with up to $125,000 in student debt, and up to $20,000 for those who met additional criteria.
The parameters of Biden’s new plan for student debt are yet to be determined, and it remains uncertain whether it will encompass a wider or narrower group of borrowers. The administration’s goal is to provide relief to as many borrowers as possible under the revised process.
Biden’s new plan for student debt will be based on the Higher Education Act, utilizing a provision that grants the Department of Education the authority to “compromise, waive, or release any right” to collect student debt.
This provision has long been argued by advocates as a means to cancel student loans. The Supreme Court rejected Biden’s previous plan, which relied on the HEROES Act and aimed to cancel up to $20,000 of student debt for a broad range of borrowers affected by the COVID-19 pandemic.
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Supreme Court’s View on Biden’s New Plan For Student Debt
It is challenging to predict how the court would respond to Biden’s new plan for student debt cancellation. The court’s previous ruling revolved around the scope of authority granted by the HEROES Act.
The Higher Education Act’s language provides a potentially broader textual basis for debt cancellation, and the negotiated rulemaking process allows the Biden administration to strengthen its case.
However, the court might still view a mass debt cancellation plan as falling under the major questions doctrine, which scrutinizes executive branch authority. President Biden remains determined to address the issue of student debt and deliver relief to borrowers. Despite the setback caused by the Supreme Court’s ruling on his initial plan, he is leveraging the Higher Education Act to devise a new approach.
While Biden’s new plan for student debt faces challenges, including a lengthy negotiated rulemaking process and potential litigation risks, Biden’s administration aims to expedite the relief efforts. Borrowers eagerly await further details on the scope and implementation of the debt cancellation plan, as they hope for meaningful relief in the near future.
