New Student Debt Relief Plan To Cancel $39 Billion After Supreme Court Blocks Original Program

A new Student Debt Relief Plan will cancel $39 billion in student loans for more than 800,000 borrowers. The new plan came weeks after the U.S. Supreme Court blocked President Biden’s original program.

On July 14, U.S. President Joe Biden announced his plans to launch a new Student Debt Relief Plan that will cancel $39 billion in student loans for over 800,000 student borrowers. The new plans came weeks after the U.S. Supreme Court decided to block Biden’s original Student Debt Relief Plan Biden.

However, according to Quinn, in comparison to the original Student Debt Relief Plan, the new Student Debt Relief Plan will be built around a different law from the Student Debt Relief Plan that was blocked by the Supreme Court. The new Student Debt Relief Plan under the Higher Education Act of 1965 will qualify a student borrower for loan forgiveness.

READ ALSO: Biden’s Plan After Supreme Court Rejects Student Debt Cancellation; Here’s What Borrowers Need To Know

New Student Debt Relief Plan

According to Harper, the Department of Education announced how it would modify how the monthly payments are counted under the income-driven repayment plans. This suggests that borrowers who are paying for more than twenty years with lower amounts will possibly be affected by these changes.

The administration of Biden claims that the changes on how to cancel old debts made the amount of loan balances more accurate. However, the Republicans argued that the new Student Debt Relief Plan is an obvious attempt to bypass the Supreme Court’s decision.

READ ALSO: Student Debt Relief Plan Borrower Owing $101K Has No Hope For Biden’s New Loan Forgiveness Plan