President Joe Biden is gearing up for a second attempt at large-scale student loan forgiveness after the Supreme Court rejected his previous $400 billion plan in June.
According to The Wall Street Journal, the new proposal, which aims to provide relief for millions of borrowers, is expected to be revealed during a speech in Wisconsin on Monday.
The Supreme Court’s ruling, which found the Biden administration had overstepped its authority, dealt a blow to the plan that would have wiped out up to $20,000 in student debt for borrowers earning less than $125,000 annually.
Joe Biden (Credits: CNN)
Facing declining support among young voters, the Biden administration sees the debt forgiveness push as a potential strategy to reverse this trend. Democrat strategist James Carville expressed concern over the party’s diminishing support among young voters, particularly young people of color.
However, similar to previous attempts, the new loan relief proposal is likely to encounter legal challenges from Republican attorneys general. These officials are expected to argue against the plan in court, citing concerns over the administration’s authority.
Biden (Credits: BBC)
Administration officials have emphasized that the new proposal will outline specific conditions for debt cancellation, distinguishing it from the broader plan struck down by the Supreme Court.
The proposed plan, based on the Higher Education Act of 1965, aims to provide relief for borrowers with high debt burdens and low incomes and those who have carried their debt for extended periods and have seen their loans grow due to accrued interest.
Despite potential legal hurdles, the Biden administration is addressing student loan debt, recognizing its importance for millions of Americans burdened by educational loans.
