In spite of the Supreme Court’s rejection of President Biden’s student loan forgiveness scheme, the Biden administration has reportedly announced that it will still attempt to reduce 804,000 borrowers’ total student debt by $39 billion.
The assistance is being offered under income-driven repayment arrangements, according to the Education Department, in which the federal government eliminates the borrower’s outstanding amounts after they have made payments for 20 or 25 years.
According to the agency, “fixes” will more precisely count the monthly payments that are eligible under the programs, and it will soon notify borrowers who qualify for the relief.
In a 6-3 decision last month, the Supreme Court rejected Biden’s proposal to forgive low- and middle-income borrowers $10,000 in student loan debt and up to $20,000 for Pell Grant recipients.
The majority concluded that Congress had not given the president specific permission to waive hundreds of billions of dollars’ worth of debt.
Following the verdict, Biden declared that, despite the court’s judgment, his administration will continue to seek to offer student debt relief.
According to supporters of the Higher Education Act, which authorizes the education secretary to release student loan debt, he declared that this statute will serve as the foundation for his debt reduction strategy.
The plan’s prospective execution is delayed since the government must go through a public feedback period first.