Only a few hours after the Supreme Court rejected the president’s plan to cancel student loans, the White House returned on Friday with a number of options to assist borrowers.
In accordance with the Higher Education Act of 1965, the Biden administration is attempting to give debt relief and has started the relevant regulatory process.
Government Introduces New Income-Driven Plan
The Education Department is also developing a temporary 12-month on-ramp repayment plan that will reduce the risk of default if borrowers skip payments once repayments resume in October.
Third, the government completed what it dubbed the most affordable repayment plan in history, a new income-driven repayment strategy.
The objective, which was set after the Supreme Court’s ruling earlier on Friday, is to lessen some of the financial burden that many borrowers have in relation to their student loans.
President Joe Biden stated in a press briefing on Friday that he thought the Supreme Court’s decision to invalidate student loan relief was a mistake and misguided.
Regarding the actions the administration is doing to bring debt relief, he emphasized that while it will take longer, it is still the greatest option available.
We won’t waste any time on this, I promise.
According to a White House fact sheet, the Education Secretary on Friday started a rule-making process in an effort to provide as many working- and middle-class debtors with a different route to debt relief under the authority granted by the Higher Education Act.
Read more: Biden’s Backup Plan For Student Loans: Exploring Student Loan Forgiveness Alternatives
Education Department Seeks Input on Student Loan Forgiveness
The Education Department on Friday published a notice informing interested parties of a virtual public hearing on July 18 and requesting written opinions.
The department will finalize the matters that require resolution following the hearing before holding negotiated rule-making sessions this autumn.
If the Biden administration is pursuing the same forgiveness plan criteria that the court rejected, it is unclear from the White House fact page.
Read more: The Final Hour Approaches For Student Loan Borrowers