HomeFinance NewsPersonal financeBiden's Student Loan Bombshell: Legal Experts Predict Plan Will withstand Challenges

Biden’s Student Loan Bombshell: Legal Experts Predict Plan Will withstand Challenges

  • ORIGINAL NEWS

Here’s why Biden administration believes new student loan forgiveness plan will survive legal challenges


  • SUMMARY

After their first attempt to forgive student debt was blocked by the Supreme Court, the Biden administration has crafted a new plan that they believe will be more resilient against legal challenges.

This time, they’re focusing on specific groups of borrowers, like those who have struggled with repayment for years or attended low-quality schools.

The hope is that this more targeted approach will better align with the Court’s concerns about broad loan cancellation.

The administration is also relying on a different law, the Higher Education Act, which gives the Education Secretary some authority to waive or release student debt.

This law was cited by Senator Elizabeth Warren in her 2020 presidential campaign proposal for student loan forgiveness.

To avoid the challenges faced with executive action, the Biden administration is pursuing a negotiated rulemaking process.

This involves seeking public input and engaging in discussions with relevant parties.

By following this more formal and thorough regulatory approach, they aim to make it harder for the courts to overturn the new plan.

Overall, the Biden administration believes their revised student debt relief plan addresses the legal issues raised by the Supreme Court and that it offers a more tailored and sustainable solution to borrowers facing financial hardship.


  • NEWS SENTIMENT CHECK
  • Overall sentiment: neutral
  • Positive



    “The Biden administration hopes that by pursuing this lengthier and more involved regulatory process, it’ll be harder for the courts to strike down the relief.”

    “Congress already authorized the U.S. Department of Education to issue regulations on specific aspects of the law, said higher education expert Mark Kantrowitz.”

    Negative



    “After the president touted his revised relief program on April 8, Missouri Attorney General Andrew Bailey, a Republican, wrote on X that Biden “is trying to unabashedly eclipse the Constitution.””

    “”See you in court,” Bailey wrote.”

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