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U.S. President Joe Biden delivers remarks on canceling student debt at Culver City Julian Dixon Library on February 21, 2024 in Culver City, California.
Mario Tama | Getty Images
At Extreme Investor Network, we are always on top of the latest developments in personal finance, including the ever-evolving landscape of student loan forgiveness. Today, we are diving into President Biden’s revised plan for student loan relief and how it hopes to overcome legal challenges.
A narrower aid package Biden hopes will survive
After the Supreme Court struck down Biden’s initial $400 billion student loan forgiveness plan, his administration quickly went to work on a new assistance package. This revised plan targets specific groups of borrowers, such as those in long-term repayment and individuals facing financial hardship.
The key to the updated plan’s legal viability lies in its narrower scope. By focusing on a smaller subset of borrowers, the Biden administration aims to present a more defensible case in front of skeptical courts.
Student debt relief activist rally in front of the U.S. Supreme Court on June 30, 2023 in Washington, DC. The Supreme Court struck down the Biden administration’s student debt forgiveness program in Biden v. Nebraska.
Kevin Dietsch | Getty Images
Additionally, the administration has chosen a different legal pathway, turning to the Higher Education Act as its justification for the new relief measures. This law, signed in 1965, empowers the education secretary to waive or release borrowers’ education debt, providing a more solid legal groundwork for the plan.
By leveraging the rulemaking process instead of executive action, the Biden administration aims to navigate the legal landscape more effectively and ensure the durability of its relief efforts.
As part of the rulemaking process, a team of negotiators has been working to finalize the details of the updated policy. Anticipated to be made public in the coming weeks, this proposal will undergo a public comment period, allowing stakeholders to weigh in on the potential changes.
Stay tuned to Extreme Investor Network for the latest updates on personal finance, investment strategies, and more. We are committed to providing valuable insights to help you navigate the financial world with confidence.
