{"id":21669,"date":"2024-04-09T03:18:09","date_gmt":"2024-04-09T03:18:09","guid":{"rendered":"https:\/\/www.thinkadvisor.com\/2024\/04\/08\/biden-details-student-loan-plan-b\/"},"modified":"2024-04-09T03:18:09","modified_gmt":"2024-04-09T03:18:09","slug":"biden-details-student-loan-plan-b","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/04\/09\/biden-details-student-loan-plan-b\/","title":{"rendered":"Biden Details Student Loan ‘Plan B’"},"content":{"rendered":"
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\u201cHow about all those hardworking people who grew up and had no opportunity to go to college? I get it,\u201d he said. \u201cThat\u2019s why a big part of my economic agenda is invested in all Americans, whether you attend college or not.\u201d<\/p>\n

Young voters were crucial to Biden\u2019s victory in 2020, when he vowed to cancel student loans as a candidate. In Wisconsin, Biden met with borrowers who have received relief through his previous initiatives, according to White House press secretary Karine Jean-Pierre.<\/p>\n

Senior administration officials, who previewed the details, said relief for borrowers with accrued interest could occur as soon as this fall. However, the timeline is unclear for when all potential beneficiaries could see cancellation.<\/p>\n

Legal Challenges<\/h2>\n

The Higher Education Action \u2014 the law the president is using to pursue relief \u2014 requires that actions take effect in July of the following year after a final rule is introduced, unless there are special circumstances. The administration has pursued other measures on a fast-tracked basis, including the so-called \u201cSAVE\u201d repayment program.<\/p>\n

Kansas Attorney General Kris Kobach, who led 11 Republican-controlled states to sue the administration over past forgiveness moves, questioned the legality of the current proposal.<\/p>\n

\u201cIf any of these schemes were a plausible reading of federal law, then the Biden administration would have done that in the first place and forgiven all of the selected loans in one step,\u201d Kobach said in a statement.<\/p>\n

So far under Biden, the White House has incrementally forgiven $146 billion in loans for 4 million people. The majority of that relief came in the months following the Supreme Court\u2019s decision to throw out the president\u2019s 2022 attempt to pursue up to $20,000 in debt cancellation for an estimated 40 million borrowers.<\/p>\n

The court\u2019s conservative majority ruled that such widespread relief could only be authorized by Congress. The president vowed to pursue a \u201cPlan B\u201d the same day it was struck down in court.<\/p>\n

The final rule must first go through a comment period, which could last anywhere from 30 to 60 days. Some lawyers have challenged a 30-day comment period for previous actions, arguing such a timeframe is too short for major regulations.<\/p>\n

Sheng Li, an attorney with New Civil Liberties Alliance also challenging the administration on other student-debt relief actions, says the interest-related measures have less legal footing than Biden\u2019s initial proposal for widespread debt cancellation.<\/p>\n

\u201cThese interest payments are not optional, and can\u2019t be waived or canceled in any way,\u201d Li said in an interview. \u201cI just can\u2019t imagine this new program really passing muster if given judicial scrutiny.\u201d<\/p>\n

(Credit: Shutterstock)<\/em><\/p>\n

Copyright 2024 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cHow about all those hardworking people who grew up and had no opportunity to go to college? I get it,\u201d he said. \u201cThat\u2019s why a big part of my economic agenda is invested in...<\/p>\n","protected":false},"author":1,"featured_media":21670,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[1],"jetpack_featured_media_url":"https:\/\/blog.lifeinsurance-orleans.ca\/wp-content\/uploads\/2024\/04\/biden-details-student-loan-plan-b.jpg","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/21669"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=21669"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/21669\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media\/21670"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=21669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=21669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=21669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}