Key takeaways:
- The Supreme Court blocked President Joe Biden’s plan to provide student loan debt relief to more than 40 million borrowers.
- The Biden administration has announced a 12-month “onramp repayment program” that will be available to borrowers starting October 1.
- Democrats are vowing to continue to fight for student loan debt relief, and the Biden administration is looking for other ways to provide relief, including potential executive action.
In a major setback for President Joe Biden, the Supreme Court on Friday blocked his plan to provide student loan debt relief to more than 40 million borrowers. The plan would have forgiven up to $10,000 in debt for each borrower.
In response to the ruling, the president announced a new 12-month “onramp repayment program” that will be available to borrowers starting October 1. The program will temporarily remove the threat of default for those who are unable to make payments.
Rep. Alexandria Ocasio Cortez (D-N.Y.), a vocal advocate for student loan debt cancellation, argued that the Biden administration can still move to forgive student loans by citing provisions of the Higher Education Act.
The Biden administration is also looking into providing broader relief for borrowers. In a statement, the president said, “More than 40 million hard working Americans are waiting for the help that President Biden promised them, and they expect this administration to throw everything they’ve got into the fight until they make good on this commitment.”
Democrats are vowing to continue to fight for student loan debt relief, despite the Supreme Court’s decision. Senate Majority Leader Chuck Schumer (D-N.Y.) said, “We will not give up on this fight. We will not rest until we get this done.”
The Biden administration is now looking for other ways to provide relief to student loan borrowers, including potential executive action. It remains to be seen whether the president will be able to deliver on his promise of debt relief for millions of Americans.
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