U.S. President Joe Biden discussed the Supreme Court’s decision to reject his student debt forgiveness plan during a briefing at the White House in Washington, D.C. on June 30, 2023.
Jim Watson | AFP | Getty Images
President Joe Biden acknowledged on Friday that the Supreme Court’s rejection of his forgiveness plan has closed one path for student debt relief. However, he expressed his intention to pursue another avenue.
“Today’s decision has closed one path,” Biden said during a briefing on Friday. “Now we’re going to pursue another.”
Biden plans to explore a different loan forgiveness program under the Higher Education Act, a 1965 law that grants the secretary of education the authority to compromise, waive, or release any rights or claims related to student loan debt.
The president did not provide detailed information about how this new approach would work but assured that it is legally sound.
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In a 6-3 ruling, the conservative majority of the Supreme Court struck down Biden’s plan to cancel up to $20,000 in student debt for millions of Americans. The court determined that the president lacked the authority to unilaterally cancel such a significant amount of consumer debt without congressional authorization.
Consumer advocates argued that debt cancellation should not end with the Supreme Court’s ruling.
“Biden must utilize another legal authority to fulfill this crucial obligation, and he must do so promptly,” urged Astra Taylor, co-founder of the Debt Collective, a union of debtors.
Other relief measures after forgiveness is nixed
The president also announced that his administration’s new payment plan, which reduces monthly bills by half for many student loan borrowers, will be available before loan payments resume.
Since March 2020, federal student loan payments have been suspended.
After the resumption of student loan payments, borrowers will have a 12-month period during which they will not face severe consequences for missing payments, including negative credit reports and collection activities.
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