The Supreme Court has ruled that the government has overstepped its powers with the plan and that borrowers will be forced to make payments due to resume this year.
WASHINGTON — President Joe Biden will address the nation on Friday afternoon after the election. supreme court The decision to terminate the student loan relief plan.
Biden had planned to announce a new set of measures to protect student-loan borrowers, according to White House officials who spoke on condition of anonymity because they weren’t authorized to speak publicly beforehand. The president is scheduled to speak at 3:30 p.m. ET.
It is unclear whether these actions include attempts to use other legal powers to write off student debt. Some Democrats argued that.
“This battle is not over,” Biden said in a statement. “I believe the court’s decision to void our student debt relief plan was wrong. and my administration will continue to work to deliver on the promise of “higher education for all Americans”. ”
The president’s speech will outline the administration’s next steps, according to a statement from the president.
Biden’s remarks follow a Supreme Court ruling effectively nullifying the administration’s $400 billion bailout plan that promised to cancel or reduce the student loan debt of millions of Americans. It was received.
With a 6-3 decision, Majority of conservative judgesmade a decision. The Biden Administration Has Exceeded Authority along with the plan. The court ruled that the administration needed congressional approval before embarking on such a costly program. The majority also denied that a 2003 bipartisan law dealing with student loans, known as the Heroes Act, gave Biden the power he claimed.
The waiver program would have written off $10,000 in student loan debt for people earning less than $125,000, or for households earning less than $250,000. Pell grant recipients typically indicated more financial need and would have been forgiven of an additional $10,000 of debt.
The administration said 26 million people had applied for relief and 43 million were expected to be eligible. Its cost is estimated at $400 billion over 30 years.
When will student loan payments resume?
Following Friday’s Supreme Court ruling, borrowers still have months to cash in before payments come due and interest on student loans resumes.
The Department of Education previously acknowledged that interest on student loans will begin on September 1, but borrowers won’t have to pay until October.
The ministry did not give a specific date when payments will begin in October.
A DOE spokesperson said in an emailed statement that the Biden administration is still working to ease the transition to monthly payments for millions of Americans. The statement said the administration will be in direct contact with borrowers and lenders by October.
https://www.wfaa.com/article/news/nation-world/biden-response-student-loan-forgiveness-plan-supreme-court-ruling/507-5a021798-9ea1-4809-bdba-9cc34fbee932 When Biden Speaks Today: Canceling Student Loan Relief Plan