Biden administration will roll out new student loan forgiveness plan

[Pelican Press 0]

Biden administration will roll out new student loan forgiveness plan

U.S. President Joe Biden delivers remarks on canceling student debt at Culver City Julian Dixon Library on February 21, 2024 in Culver City, California. 

Mario Tama | Getty Images

A narrower aid package Biden hopes will survive

The president’s

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Immediately after the Supreme Court struck down Biden’s $400 billion student loan forgiveness plan last June, his administration began working on a revised assistance package.

The Biden administration believes its updated plan will survive legal challenges this time for several reasons. One, it’s far narrower than its first attempt, which would have impacted as many as 40 million Americans.

“I think it would be easier to justify in front of a court that is skeptical of broad authority,” said 

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, an assistant professor of law at the University of Alabama, in an earlier interview with CNBC.

Student debt relief activist rally in front of the U.S. Supreme Court on June 30, 2023 in Washington, DC. The Supreme Court stuck down the Biden administration’s student debt forgiveness program in Biden v. Nebraska.

Kevin Dietsch | Getty Images

It is also using a different law — the Higher Education Act rather than the Heroes Act of 2003 — as its legal justification.

The HEA was 

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 in 1965, and allows the 

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 some authority to waive or release borrowers’ education debt.

The Heroes Act was passed in the aftermath of the 9/11 ********** attacks, and grants the president broad power to revise student loan programs during national emergencies.

The ************* justices didn’t buy that argument.

″’Can the Secretary use his powers to abolish $430 billion in student loans, completely canceling loan balances for 20 million borrowers, as a pandemic winds down to its end?'” Chief Justice John Roberts wrote in the majority opinion for 

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. “We can’t believe the answer would be yes.”

Lastly, the Biden administration has now turned to the rulemaking process to deliver its relief. The president previously attempted to cancel the debt through executive action.

As part of the rulemaking process, a team of negotiators met four times to try to establish the new parameters of the updated policy. The final session concluded in February.

Based on the timeline of regulatory changes, the proposal will likely become public within weeks, Kantrowitz said.

“Typically at the end of the negotiated rulemaking, a month or so later you have publication of the proposal,” he said.

There will then be a public comment *******, which is likely to last for at least 30 days.

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