Biden Announced New Path For His Student Loan Relief – Here’s What You Need To Know

President Biden laid out his new plans after the Supreme Court struck down his student loan relief program that upended a key campaign pledge, promising to continue seeking debt forgiveness through “a new path” that is “legally sound.”

Biden Announced New Path For His Student Loan Relief – Here’s What You Need To Know (PHOTO: CBS News)

Biden’s New Path For His Student Loan Relief

President Biden firmly stated that he did not have any false hope for all borrowers through his now-defeated program, which would have forgiven up to $20,000 in federal student loan debt.

The president expressed in court that it was “misinterpreted the Constitution,” and blamed Republicans for suing over the student loan relief program and for voting against it in Congress, CBS News reported.

Biden told reporters after remarks at the White House he did what was appropriate but the Republicans snatched away the hope that they were given to the borrowers.

Moreover, the president promised the borrowers that he isn’t backing down even decision has closed one path, and reassured them that he will pursue another path and that he will never stop fighting the student loan relief.

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Bident Announced His New Path Agenda

Biden said that he will have a new path in line with today’s ruling to provide student debt relief to as many borrowers as soon as possible and the new path will be in a different law than the original plan which is the so-called Higher Education Act.

Hence, the president announced to directed Education Secretary Miguel Cardona to start a process under a law known as the Higher Education Act to forgive loans “compromise, waive or release loans under specific possibilities.” The administration is also rolling out a 12-month “on-ramp repayment program” when student loan payments continue in the fall after being halted during the pandemic. The Department of Education starting October 1 and lasting for a year,  won’t refer borrowers who miss payments to credit agencies or consider them delinquent, the White House said.

Moreover, Bident also stated a new income-based repayment plan for federal loans, dubbed the “Saving on a Valuable Education,” or SAVE, plan. Under the program, monthly payments for undergraduate loans are limited to 5 percent of income, cut in half from their current level of 10 percent.

The White House stated that Biden also trimmed the amount of period required to forgive loans of $12,000 less than 10 years of payments instead of 20 years.

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