WASHINGTON D.C. – President Joe Biden vowed to continue the fight for student debt forgiveness after the U.S. Supreme Court ruled against his landmark $430 billion plan.
The ruling is viewed as a major setback for an estimated 40 million borrowers who had hoped that the plan would relieve a significant portion of their student loans.
Speaking at the White House on Friday, June 30, 2023, President Biden expressed his disagreement with the 6-3 decision by the Supreme Court.
“I think the court misinterpreted the constitution,” the president remarked. He indicated that his administration would explore alternative legislative avenues for debt forgiveness.
The initial plan was to use the 2003 Heroes Act to alleviate ongoing education costs for borrowers.
This act, implemented in the aftermath of the September 11, 2001, terrorist attacks, gave the Secretary of Education the authority to modify any provision of student aid program laws.
According to President Biden, 16 million people had already been approved for the program, which could have provided them with $10,000 to $20,000 in relief.
Biden emphasized the economic benefits that could have arisen from debt relief, such as increased home purchases and new business ventures.
Following the court’s ruling, Biden announced that his administration would turn to the Higher Education Act of 1965 to seek ways to restore student debt relief.
Additionally, he plans to implement a 12-month repayment program to assist individuals with student debt in avoiding defaults and adverse credit ratings in cases where they are unable to make payments.
The ruling by the Supreme Court undermines a key component of the Biden administration’s agenda as the 2024 election looms.
Addressing student debt was a central promise of Biden’s campaign, particularly for progressive voters.
When asked if he had failed to fulfill his promise, President Biden was quick to respond, “I didn’t give any false hope.
Republicans snatched away the hope that was given.” He criticized what he called the “hypocrisy of Republican elected officials,” pointing out that they approved billions in pandemic-related loans to businesses through the paycheck protection program in 2020.
He contrasted this with their opposition to student debt relief for working Americans.
Biden concluded by reiterating his commitment to finding alternative avenues for providing relief to those struggling with student debt, vowing that the fight was far from over.
