Supreme Court ruling on student debt relief sparks political defiance and alternative plans

The Supreme Court has struck down President Biden's plan to cancel or reduce federal student loan debt, stating that the administration overstepped its authority. However, the Biden administration is still pursuing student loan debt forgiveness through an alternative path using the Higher Education Act. The act allows the education secretary to "compromise, waive or release" student loans, and the details of who would be eligible for debt relief and how much would be canceled will be decided through a federal rule-making process. Student loan payments will resume in October 2023, but borrowers will be protected from severe consequences for up to 12 months through a temporary "on-ramp" period. The Department of Education has also finalized a new repayment plan called the Saving on a Valuable Education (SAVE) plan, which will cut borrowers' monthly payments in half and forgive loan balances after 10 years of payments.