Throughout his presidency, Joe Biden’s platform has included student loan forgiveness, which has been proposed, considered, and ultimately passed to assist individuals with outstanding education debt level the financial playing field.
However, despite the administration’s good intentions, Forbes articles indicate that the plan they drew has not come to fruition and that they were forced to make adjustments because multiple lawsuits prevented the debt forgiveness from occurring.
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What Other Efforts Exist For Student Loan Borrowers?
The Supreme Court will have to make a decision next month, and the option for the $10,000 to $20,000 in promised federal student loan debt has not been declared officially for approximately 10 months.
The most essential thing at this time is to await the Supreme Court’s decision on whether the $10,000 to $20,000 in loan forgiveness per eligible borrower is lawful and plans can proceed; if they reject it, the Higher Education Act provides an alternative.
According to Jonathan McCollum of Davidoff Hutcher & Citron, Biden’s ability to affect change is limited, but the HEA can assist because it is a law and can “compromise, relinquish, or release any right, title, claim, lien, or demand, however acquired, including any equity or any right of redemption.”
A second option for Biden is to collaborate with Congress to pass new legislation that enjoys bipartisan support, such as the Pell Grant program.
Plan C, which is Revised Pay As You Earn (REPAYE), modifies monthly payments to $0 for those earning approximately $30,600 annually. For those with a higher income, it is possible to reinterpret their debt and pay much less.
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