Despite the Supreme Court's ruling borrowers can seek relief with their loans under the Biden administration's income-driven repayment plans and a program for public sector employees. Here's how:
On Friday, the justices ruled 6-3 that Biden had overstepped his executive authority by offering to eliminate up to $10,000 in federal student loan debt for borrowers making less than $125,000 and up to $20,000 for Pell Grant recipients.
It's been reported that Biden's Department of Education plans to find"workarounds" to allow the president to deliver on his campaign promise on student loan forgiveness. But so far nothing has been announced by the White House.—rather than the Higher Education Relief Opportunities for Students Act that he's drawn on for his plan—to forgive $10,000 in loans for borrowers.
Although the Supreme Court's ruling means that the loan balances of an estimated 40 million Americans will remain intact for now, borrowers can seek relief on their federal student loans in several other ways:Those working in public sector jobs can apply for Biden's Public Service Loan Forgiveness program, which cuts payments and erases the remaining balance after 120 qualifying payments for anyone working full time at a nonprofit or for federal, state, local or tribal governments.
People gather in front of the Supreme Court during a protest in support of student debt cancellation on February 28.Biden's new income-driven repayment plan is another way borrowers can seek relief. Under the IDR plan, monthly payments on undergraduate loans would go from 10 to 5 percent of discretionary income.
The program, which is estimated to help approximately 7.5 million Americans, grants these individuals access to federal student aid and other government loans, to flexible repayment plans, and to short-term relief like forbearance, since those who have defaulted can suffer seizure of tax refunds and see long-lasting negative effects on their credit.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Biden rips Supreme Court decision on race-based college admissions: ‘Not a normal court’President Biden delivered a speech Thursday condemning the Supreme Court's decision that the consideration of race by universities for admissions is unconstitutional.
Read more »
Biden slams Supreme Court for affirmative action decision: 'This is not a normal court'President JoeBiden slammed the Supreme Court for reversing a college admissions affirmative action precedent a year after overturning Roe v. Wade. 'Today, the court once again walked away from decades of precedent,' Biden said.
Read more »
Biden knocked for declaring Supreme Court is 'not a normal court:' 'Not a normal presidency'President Biden was blasted on Thursday for proclaiming that the U.S. Supreme Court is “not a normal court' following its ruling on affirmative action.
Read more »
Supreme Court rejects Biden's plan to wipe away $400B in student loansA sharply divided Supreme Court ruled Friday that the Biden administration overstepped its authority in trying to cancel or reduce student loans for millions of Americans.
Read more »
Supreme Court rejects Biden’s plan to wipe away $400 billion in student loansBREAKING: A sharply divided Supreme Court ruled Friday that the Biden administration overstepped its authority in trying to cancel or reduce student loans for millions of Americans.
Read more »
Supreme Court rejects Biden plan to wipe away $400 billion in student loansA sharply divided court has ruled that the Biden administration overstepped its authority in trying to cancel or reduce student loans for millions of Americans.
Read more »