President Biden's administration has unveiled a new plan to provide student loan relief, potentially canceling the debt of over 4 million borrowers and offering relief to more than 10 million others. The plan aims to eliminate interest for 23 million borrowers and could take effect as early as this fall, though the final regulations are still pending. The proposal, which comes after the Supreme Court's rejection of a previous relief plan, has drawn both support and criticism, with legal challenges expected. Biden's focus on student loan relief reflects its significance as an election issue, and the administration has already implemented various measures to relieve billions of dollars in student loans.
President Joe Biden is set to unveil a new plan to broaden student loan relief for specific categories of borrowers, nearly a year after the Supreme Court rejected his initial $400 billion proposal. The plan, to be announced in Wisconsin, aims to expand federal student loan relief through the Higher Education Act and is expected to be smaller and more targeted than the previous proposal. It includes categories such as resetting balances for those with snowballing interest, erasing remaining debt for long-term payers, and automatic loan cancellation for certain groups. The plan is part of the administration's efforts to provide relief to those with the greatest need and follows targeted initiatives that have already canceled $144 billion in student loans for almost 4 million Americans.
The Biden administration has proposed a new plan to determine which low-income Americans could qualify for student debt relief, taking into account life challenges that prevent borrowers from making progress on their loans, such as disabilities or high-cost burdens for essential expenses. The plan aims to provide automatic relief for borrowers highly likely to default in two years, potentially impacting hundreds of thousands of borrowers. Progressive lawmakers and advocates have praised the proposal, while critics have raised concerns about rising student debt and college completion rates. The Education Department will discuss the plan in its final session of student loan relief talks next week.
The Supreme Court's recent term saw significant decisions on affirmative action, student loan relief, free speech, and LGBTQ+ rights, with the conservative majority asserting its influence. Chief Justice John Roberts, who was in the majority 95% of the time, played a pivotal role in shaping the court's decisions. While the court realized conservative policy goals, unexpected rulings on election law, voting rights, and Native American adoption preferences showcased a more complex term. Roberts, an institutionalist concerned about the court's legacy, demonstrated a willingness to move incrementally and form cross-ideological alliances. The court's next term is expected to address cases involving administrative law and the Second Amendment.
President Biden has vowed to find an alternative path to provide relief for student loan borrowers after the Supreme Court struck down his student loan forgiveness plan. Biden plans to use a legal workaround and criticized Republicans who sued to block the original program. While details of the new plan are scarce, Biden announced that he would attempt to use the 1965 Higher Education Act to offer relief to borrowers. The ruling marks a significant blow to one of Biden's key initiatives, forcing him and his party to recalibrate their political messaging and search for alternative ways to reassure voters. Democrats are gearing up for a more direct battle against the Supreme Court, with some calling for measures such as expanding the court or imposing term limits on justices.
The Senate passed a resolution to repeal President Biden's plan to offer up to $20,000 in federal student loan debt relief, which is expected to be vetoed by the president. The resolution was introduced by Republicans and passed with a 52-46 vote, with two moderate Democrats and an independent voting in favor. The plan has been tied up in the courts for months, and a Supreme Court ruling is expected by early July. The Senate also passed a bipartisan bill to lift the national debt ceiling, setting the date for resuming federal student loan repayments after August 29.
House Republicans are hoping to gain support from some politically vulnerable Democrats for their debt-limit package, which includes conservative priorities such as expanding work requirements for food assistance programs and overturning Biden's student loan forgiveness program. The GOP's push to streamline permitting rules for energy projects might attract enough interest among Democrats to get added to a final deal. Democrats have insisted that they're ready to haggle over federal funding for the fiscal year that kicks off on Oct. 1, but not with the Treasury Department's borrowing ability at stake.
Susan Rice, President Biden's domestic policy adviser, will step down next month after overseeing some of the administration's most polarizing issues, including gun control, student loan relief, and immigration. During her tenure, she worked on Mr. Biden's student loan cancellation plan, a police reform executive order, and a policy to cap the price of insulin at $35. Ms. Rice will step down on May 26, as the Biden administration is expected to lift a Trump-era public health rule that has empowered it to expel thousands of migrants.
