In a few weeks, the fate of President Joe Biden’s ground-breaking student loan forgiveness plan will be decided.
The effort, which, if approved, could erase up to $20,000 in federal student loan debt for more than 30 million students, is facing two challenges that call into question its legality. The Supreme Court is anticipated to issue a decision on these objections in the near future.
Exploring Biden’s Alternatives if Student Loan Program Fails
If the Supreme Court ultimately decides to invalidate the President’s well-known student loan reduction scheme, the Biden administration has insisted that there is no fallback strategy.
In the event of a negative decision, Biden will have a few options to weigh, none of which would be perfect.
The resolution was first put out in March by Republican Rep. Bob Good and made use of the Congressional Review Act, a control mechanism that allows lawmakers to reject final regulations established by the executive branches.
The legislation is anticipated to be put to a vote by the House on Wednesday.
A group of Republican senators has submitted a companion version of the measure.
Before Biden unveiled his comprehensive plan to cancel student loans, some Republican senators attacked the relief, saying it was expensive and unfair to individuals who have already paid off their debt.
However, a lot of Democrats and the Biden administration have continued to believe that the relief is legal and that it is required to assist millions of borrowers in recovering financially from the pandemic.
The White House is emphasizing its position in a statement released on Monday by the Office of Management and Budget.
Read more: Social Security Payment Would Change In 2024 With Biden Administration’s Policies
Millions of Borrowers Await Supreme Court Verdict
Since November, two lawsuits backed by the right have prevented the implementation of Biden’s extensive debt reduction proposal.
Millions of borrowers are currently waiting for the Supreme Court’s decision on the legality of the relief, which is anticipated by the end of June, but it is clear from the resolution that GOP lawmakers don’t want to wait for that ruling.
Leading Republican Virginia Foxx stated last week during a hearing of the education committee that our country’s culture has changed from one in which individuals are responsible for paying for themselves to one in which the government plays nanny to each individual need.
Given the Republican majority in the House, the resolution may pass there, but with the Democratic-controlled Senate and White House, it will be much more difficult.
In a letter to congressional leaders, 261 advocacy groups said that the Republican attempts to block student debt relief would immediately force tens of millions of borrowers into abrupt and unplanned repayment with devastating effects, including adding thousands of dollars in payments and interest to their loan balances.
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