Biden's Student Debt Solution: Examining the Plan and Its Impact

President Biden is proposing to use the "compromise and settlement authority" under the Higher Education Act of 1965 to cancel student loan debt after losing a Supreme Court lawsuit over his previous plan. The administration aims to give the Education Department the power to "enforce, pay, compromise, waive or release" debt, potentially offering relief to eligible borrowers. The process is expected to take several months, and the details of who would qualify for debt cancellation remain unclear. While the Supreme Court may scrutinize the breadth of this authority, Biden's administration may narrow eligibility to borrowers in default or those who may be difficult to collect from.