With permission under the Higher Education Act of 1965, the Secretary of Education may “compromise, waive, or release” debt.
The student loan forgiveness program proposed by President Joe Biden is being updated.
The President said that he will pursue an alternative strategy to student debt relief under the Higher Education Act after the Supreme Court rejected the Biden administration’s plan to cancel up to $20,000 in student loan debt for American students on Friday.
The Secretary of Education has the authority to “compromise, waive, or release” debt under the 1965 statute. According to The Wall Street Journal, the President described the course of action as “legally sound” when speaking outside the White House on Friday afternoon.
He continued, “It’s going to take longer, but in my opinion, it’s the best path that remains to provide as many people debt relief as feasible.
According to a press conference, the White House acknowledged that Education Secretary Miguel Cardona has “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 legal authority.
The President also stated that his new strategy will grant borrowers who are unable to make loan payments a 12-month “on-ramp” period during which they will not be reported to credit agencies or have their loans referred to collection agencies. This is because the current moratorium on student loan bills expires in October.
A White House insider had told PEOPLE on Friday that Biden would make it known that “he’s not done fighting yet.” Shortly after that, the statement was made.
Even if we vehemently disagree with the court, the source claimed that we were ready for this eventuality. “The President will announce new actions to protect borrowers of student loans and make it clear that he’s not done fighting yet.”
In a statement released by the White House, Biden stated, “I believe that the Court’s decision to strike down our student debt relief proposal is misguided.
On Wednesday, June 28, 2023, US President Joe Biden addresses the media on the South Lawn of the White House before boarding Marine One. Today in Chicago, Biden will present what the White House is referring to as a major speech on the principles and application of Bidenomics.
“The hypocrisy of Republican elected officials is stunning,” the statement said. They had no issues with the billions of dollars in loans made to businesses in response to the pandemic, including thousands and even millions of dollars for their own companies. And those debts were discharged. However, they exerted every effort to thwart relief efforts for millions of hard-working Americans.
