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President Joe Biden He wasted no time Friday in announcing a new plan to achieve forgiveness of student debt for millions of borrowers, after the Supreme Court ruling that vetoed their student loan forgiveness plan was released that same day.
On Friday morning, the Supreme Court ruled that Biden’s initial plan to cancel up to $20,000 in student debt was an excess of authority under the HEROES Act of 2003 and vetoed its implementation.
That law gives the Secretary of Education the ability to waive or modify student loan balances in connection with a national emergency, such as COVID-19, but a majority of Supreme Court justices voted in favor of it. ruling that it was not the right law to relieve millions of borrowers.
Hours after the ruling, Biden announced that his administration will take a new route.
The Department of Education filed a notice Friday to begin the regulatory process of using the Higher Education Act of 1965 to cancel student debt, that does not require relying on a national emergency to cancel and reduce debt “under certain circumstances” to “as many debtors as possible and as quickly as possible”
“This new path is legally sound”, said Biden on Friday. “It will take more time and, in my opinion, it is the best path left to serve as many borrowers as possible. But I am directing my team to advance as quickly as possible in the law,” declared the president in an appearance before the media at the White House together with the Secretary of Education, Miguel Cardona.
Also a new income-based student debt payment plan will be put in place that will reduce the amount that each person must pay monthly and that will save the majority of debtors $1,000 per year.
In addition, financially vulnerable debtors who cannot make payments will not be considered delinquent during the next year, which in practice will be equivalent to a new moratorium similar to the one approved during the covid-19 pandemic.
“Today’s ruling closes a path, but we will look for another. I will never stop fighting for you. We will use all the tools we have to alleviate the student debt you need to achieve your dreams,” Biden said addressing the students.
In a decision supported by the conservative majority of the Supreme Court, and opposed by the three progressive judges, the court considered that the Biden Administration did not have the power to cancel part of the student debt.
The plan provided sweeping debt forgiveness of $10,000, which in some cases could go as high as $20,000, and would benefit millions of people, but several Republican-ruled state attorneys challenged it, saying it hurt the state. public treasury.
Visibly upset after the ruling, Biden said he was “disappointed” as were millions of Americansand accused the country’s highest court of having “misinterpreted” the Constitution with its decision.
He also lashed out at the Republicans, whom he called “hypocrites” for promoting debt forgiveness for large companies but preventing it in the case of students.
Biden said he did what was “appropriate” and what was in his power, but “the Republicans took away hope” from college students.
In a post on social media, House Speaker Kevin McCarthy, Republican, hailed the ruling because, he said, most Americans “will no longer be forced” to pay minority student debt.
Keep reading:
– Supreme Court strikes down Biden’s student debt relief plan
– The House of Representatives failed to override Biden’s veto of the bill that repeals student debt relief
– Biden vetoed a bill that would revoke his student debt cancellation plan