Biden Is Attempting To Overrule Supreme Court’s Ruling On College Loan Forgiveness

Shortly after the United States Supreme Court ruled in a 6-3 decision that Biden’s college bailout plan was unconstitutional the Biden admin wasted no time attempting to create a back up plan that would attempt to find a loophole in the court’s decision.

Biden has now introduced a new Forgiveness plan by using the Higher Education Act (HEA).

All the pieces however are not put together in Biden’s new plan and it was clear his admin doesn’t have a clear plan due to the fact on Friday he said “We need to find a new way, and we’re moving as fast as we can.”

Listen to him below:

Biden: I'm announcing today a new path consistent with today's ruling to provide student debt relief to as many borrowers as possible as quickly as possible. We will ground this new approach in a different law than my original plan with the higher education act. pic.twitter.com/d70zEDIPf4

— Acyn (@Acyn) June 30, 2023

JUST IN: President Biden reintroduced his forgiveness plan grounded in the Higher Education Act, which advocates argue allows the education secretary to “compromise, waive or release” students loans. https://t.co/3Pm6tv7DIg

— The Hill (@thehill) June 30, 2023

Here’s what The Hill reported:

President Biden on Friday announced new actions to offer student loan borrowers some forgiveness, reintroducing his forgiveness plan grounded in the Higher Education Act (HEA).

ADVERTISEMENT

Using the HEA to provide student debt relief has been pushed by student loan advocates and top Democrats for years. Under the HEA, advocates argue it allows the education secretary to “compromise, waive or release” student loans. This path will require a public comment and notice period before it could go into effect.

“We need to find a new way, and we’re moving as fast as we can,” he said in Friday afternoon remarks at the White House.

The administration had tied the student debt relief plan — struck down by the Supreme Court — to the national emergency established during the COVID-19 public health crisis, citing the Higher Education Relief Opportunities for Students (HEROES) Act. Chief Justice John Roberts wrote in the court’s majority opinion, issued Friday morning, that the HEROES Act does not grant the authority.

Biden did not offer further details about who would qualify or how much debt relief borrowers would receive under his new plan to use the HEA, but he said Education Secretary Miguel Cardona has taken steps to initiate the rulemaking process.

Joe Biden’s $400 billion student loan bailout has been STRUCK DOWN by the Supreme Court. pic.twitter.com/tXFEk6qSUg

— Becker Clips (@NewsBecker) June 30, 2023

Per The Guardian:

Joe Biden lays out new student debt relief plan after supreme court ruling
President says ‘the court misinterpreted the constitution’ as he announces intention to use another law for debt forgiveness

“I think the court misinterpreted the constitution,” the president said, delivering remarks at the White House and announcing his intention to pivot to another law to find another path forward.

The 6-3 decision from the court dealt a blow to an estimated 40 million borrowers who had hoped the $430bn plan would allow the 2003 Heroes Act to help curb the ongoing costs of their education. The law gave the secretary of education authority to make changes to any provision of applicable student aid program laws in the aftermath of the September 11 terrorist attacks in 2001.

Biden said 16 million people had already been approved for the program, which would have given them $10,000 to $20,000 in relief. “More homes would’ve been bought, more businesses would’ve been started,” he said.

ADVERTISEMENT

Biden promised to now turn to the Higher Education Act of 1965 to restore student debt relief. He also plans to enact a 12-month repayment program that would help people with student debt avoid defaulting on their loans if they couldn’t pay and avoid years of bad credit ratings.

We’ve all known this to be true, but today the Supreme Court made it crystal clear: If you take out a loan, you pay it back.

Our country can’t afford Biden’s giveaways. pic.twitter.com/24GkhLjQUU

— Tim Scott (@votetimscott) July 1, 2023

Instead of just simply accepting the court’s ruling, Biden is trying to take a different route.