Biden announces to pursue alternative route to waive student loan debt after Supreme Court blocks original plan

economictimes.indiatimes.com:

Joe Biden announced on Friday his intention to seek the cancellation of student loan debt using an alternative legal authority after the Supreme Court blocked his original program to eliminate up to $20,000 in student loan debt for millions of Americans. Biden stated that his administration will now work towards forgiving student loan debt through the Higher Education Act of 1965, which grants the education secretary the power to modify, waive, or compromise federal student loans under specific circumstances.

Speaking from the White House after the court ruled that his initial plan exceeded executive authority, Biden emphasized that pursuing debt relief through the Higher Education Act is the most viable option remaining to provide relief to as many borrowers as possible. He asserted that this new path is legally sound, although he acknowledged that it will take longer to implement. In response, Biden directed his administration to proceed as swiftly as possible within the bounds of the law. Education Secretary Miguel Cardona wasted no time and initiated the regulatory process through the Higher Education Act shortly after the court's ruling. This rulemaking process allows the Education Department to develop policies that impact the distribution of financial aid by engaging in negotiations with key stakeholders, including university leaders, loan servicers, and students. The objective is to reach a consensus on the new rules, and if successful, the government will adopt their guidance. If no agreement is reached, the department will decide whether to proceed with the proposed policy or create its own rule. The public will have an opportunity to provide comments before the