Faced with the Supreme Court ruling to block President Joe Biden’s plan to forgive the loan to university students, the president announced a plan B to finally carry out his flagship student debt cancellation program.
“This new route will take more time, but in my opinion it is the best route left,” the president reported hours after the controversial ruling.
The president, who appeared before the media at the White House together with the secretary of education, Miguel Cardona, specified that his administration will use the Higher Education Law in order to cancel and reduce the debt under certain circumstances “for as many debtors as as possible and as quickly as possible.
Likewise, it will implement a new payment plan based on income that will reduce the amount that each person will have to pay monthly, and will be able to save $1,000 dollars a year for most debtors.
As part of the measures, those financially vulnerable debtors who cannot make payments will not be considered delinquent, this being a new moratorium similar to the one approved during the covid-19 pandemic.
Cardona, for his part, clarified that it is a general pause, and that those who can meet the payments must do so.
In the same way, Cardona affirmed that the decision of the court made this Friday is wrong. In addition, they will try to base the new plan to forgive student debt on other types of powers, but that will require a more extensive legislative process, reported the EFE news agency.
Following these statements, the official did not specify how many students could be part of the new system, nor was it clear how long it will take, but he assured that he was confident that the case could withstand judicial scrutiny.
“Today’s ruling closes a path, but we will look for another. I will never stop fighting for you. We will use all the tools we have to alleviate the student debt you need to achieve your dreams,” Biden promised the students.
Cardona added that the government wants to expand access to higher education, and it is a plan that they will implement despite the court’s decision.
Keep reading:
• Biden administration scales back student loan forgiveness plan as red states sue
• Biden asks the Supreme Court to allow him to move forward with a program to forgive student loan debts of up to $20,000
• White House encouraged Americans to continue requesting student debt forgiveness