PresidentJoe Biden’sstudent loan forgiveness planis getting a revamp.After theSupreme Court struck down the Biden administration’s planto cancel up to $20,000 in student loan debt for American borrowers on Friday, the President announced that he will take an alternative course of action to student debt relief under theHigher Education Act.The1965 lawgives the Secretary of Education the right to “compromise, waive, or release” debt. The President called the course of action “legally sound” while speaking outside the White House on Friday afternoon, perThe Wall Street Journal.“It’s going to take longer, but in my view, it’s the best path that remains to providing as many borrowers as possible with debt relief,” he added.The White House confirmed that Education Secretary Miguel Cardona had “initiated a rulemaking process aimed at opening an alternative path to debt relief for as many working and middle-class borrowers as possible” using his authority under the law in apress briefing.Anna Rose Layden/Getty ImagesBeing that the current pause of student loan bills ends in October, the President also announced that his new course of action will giveborrowers who are not able to make paymentson their loans a 12-month “on-ramp” period where they will not be reported to credit agencies or have their loans referred to collection agencies.The announcement came shortly after a White House source told PEOPLE on Friday that Bidenwould make clear that “he’s not done fighting yet.““While we strongly disagree with the court, we were prepared for this scenario,” the source said. “The President will make clear he’s not done fighting yet, and will announce new actions to protect student loan borrowers.““I believe that the Court’s decision to strike down our student debt relief plan is wrong,” Biden said in anofficial White House statement.Al Drago/Bloomberg via GettyNever miss a story — sign up forPEOPLE’s free daily newsletterto stay up-to-date on the best of what PEOPLE has to offer, from juicy celebrity news to compelling human interest stories.“The hypocrisy of Republican elected officials is stunning,” the statement added. “They had no problem with billions in pandemic-related loans to businesses – including hundreds of thousands and in some cases millions of dollars for their own businesses. And those loans were forgiven. But when it came to providing relief to millions of hard-working Americans, they did everything in their power to stop it.”
PresidentJoe Biden’sstudent loan forgiveness planis getting a revamp.
After theSupreme Court struck down the Biden administration’s planto cancel up to $20,000 in student loan debt for American borrowers on Friday, the President announced that he will take an alternative course of action to student debt relief under theHigher Education Act.
The1965 lawgives the Secretary of Education the right to “compromise, waive, or release” debt. The President called the course of action “legally sound” while speaking outside the White House on Friday afternoon, perThe Wall Street Journal.
“It’s going to take longer, but in my view, it’s the best path that remains to providing as many borrowers as possible with debt relief,” he added.
The White House confirmed that Education Secretary Miguel Cardona had “initiated a rulemaking process aimed at opening an alternative path to debt relief for as many working and middle-class borrowers as possible” using his authority under the law in apress briefing.
Anna Rose Layden/Getty Images
Being that the current pause of student loan bills ends in October, the President also announced that his new course of action will giveborrowers who are not able to make paymentson their loans a 12-month “on-ramp” period where they will not be reported to credit agencies or have their loans referred to collection agencies.
The announcement came shortly after a White House source told PEOPLE on Friday that Bidenwould make clear that “he’s not done fighting yet.”
“While we strongly disagree with the court, we were prepared for this scenario,” the source said. “The President will make clear he’s not done fighting yet, and will announce new actions to protect student loan borrowers.”
“I believe that the Court’s decision to strike down our student debt relief plan is wrong,” Biden said in anofficial White House statement.
Al Drago/Bloomberg via Getty
Never miss a story — sign up forPEOPLE’s free daily newsletterto stay up-to-date on the best of what PEOPLE has to offer, from juicy celebrity news to compelling human interest stories.
“The hypocrisy of Republican elected officials is stunning,” the statement added. “They had no problem with billions in pandemic-related loans to businesses – including hundreds of thousands and in some cases millions of dollars for their own businesses. And those loans were forgiven. But when it came to providing relief to millions of hard-working Americans, they did everything in their power to stop it.”
source: people.com
