Biden to use Higher Education Act to circumvent Supreme Court ruling on student loan plan

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President Biden has quickly pivoted to Plan B after the U.S. Supreme Court struck down his student-loan forgiveness plan.

Mr. Biden announced Friday that he’ll enact a different student debt-relief program under a 1965 law, the Higher Education Act. Democrats including Sen. Elizabeth Warren of Massachusetts and Rep. Alexandria Ocasio-Cortez of New York had been repeatedly urging Mr. Biden to turn to the Higher Education Act if the Supreme Court killed his student loan relief plan.

Mr. Biden had centered his debt forgiveness plan around the 2003 Higher Education Relief Opportunities Act, which requires the existence of an emergency crisis situation such as the COVID-19 pandemic to cancel student loan debt. Last year, the Department of Education forgave $6 billion in loans for defrauded students. In 2019, former President Trump used it to eliminate student loan debt for 25,000 disabled veterans.

Still, Mr. Biden said Friday that his new path forward is “legally sound” and “the best path forward.”

 

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