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Student Debt Relief Plan Borrower Owing $60K Dismayed with Biden’s New Plans

Student Debt Relief Plan [Photo: CNBC]
Student Debt Relief Plan [Photo: CNBC]

Olivia Bissanti, a Student Debt Relief Plan borrower whose loan balance is around $60,000, had some concerns about U.S. President Biden’s original Student Debt Relief Plan. After the original program was blocked, Bissanti still does not feel too keen on Biden’s new plans.

Student Debt Relief Plan [Photo:]

Student Debt Relief Plan [Photo:]

Following the payment pause due to the COVID-19 pandemic, Olivia Bissanti, 23, has not yet paid off her federal student loan balance. However, in 2021, six months after graduating from college, Bissanti began making payments on her private student loans.

Unfortunately, according to an article in Business Insider, at the end of June, the U.S. Supreme Court struck down President Joe Biden’s Student Debt Relief Plan. The majority of the court decided that Biden overreached his authority by allowing the Department of Education Secretary to modify or waive student loans during a national emergency under the HEROES Act of 2003.

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

New Student Debt Relief Plan

An article in Yahoo states that after the original Student Debt Relief Plan was blocked, the Education Department prepared to resume the payments for federal student loans in October. Nonetheless, the department announced an “on-ramp” grant of 12 months to guarantee that the student borrowers who fail to make payments will not be reported to any credit agency.

On July 14, the department even announced that it will cancel $39 billion in student loans for more than 800,000 student borrowers who have made eligible payments toward income-driven repayment plans. However, the vagueness of the new Student Debt Relief Plan, which according to the administration has an uncertain timeline, discourages Bissanti from Biden’s new plans.

READ ALSO: $400 Billion Student Debt Relief Plan Defended By White House Ahead Of Supreme Court Ruling

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