Biden offers alternative student debt relief plan that would remove immediate threat of default

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President Joe Biden is offering an alternative student debt plan designed to ease borrowers’ threat of default if they fall behind on their payments after the Supreme Court struck down his original initiative.

President Joe Biden rarely gives network interviews. When he sat down in studio with MSNBC on Thursday, it came at an especially busy time, with the Supreme Court having just overturned the use of affirmative action in college admissions and in the aftermath of a revolt in Russia.

Ticking off what he said were billions of dollars in benefits to the well-to-do under the Trump administration, he said, “These Republican officials just couldn’t bear the thought of providing relief for working class, middle class Americans.”Top administration officials said they had met for weeks to discuss how to handle the Supreme Court’s expected reversal of Biden’s original plan.

Massachusetts Democratic Sen. Elizabeth Warren, one of her party’s leading voices on the left, said, “The president has more tools to cancel student debt — and he must use them.” Former U.S. ambassador to the United Nation’s Nikki Haley said the Supreme Court was “right to throw out Joe Biden’s power grab.”

The White House’s efforts to block payments were an attempt to keep a Biden 2020 campaign promise to wipe out student loan debt that was especially popular with young voters and progressives. Both will be vital to Biden in next year’s presidential race — but may be less energized about supporting him after the high court’s decision.

A May poll from The Associated Press-NORC Center for Public Affairs Research found that 43% of U.S. adults approve of how Biden sought to handle student debt, similar to his approval rating overall of 40% in the same poll.

 

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