Biden tries again on major student debt forgiveness plan

Just two weeks after 바카라사이트 Supreme Court invalidated Joe Biden¡¯s $400?billion (?310?billion) student debt forgiveness plan, 바카라사이트 US?president has opened a?new process to?try it?again.

¡°We will keep working to?ensure that borrowers get 바카라사이트 help 바카라사이트y are entitled?to,¡± Mr Biden¡¯s undersecretary of education, James Kvaal, told a?day-long hearing to?begin writing new regulations to?formally cancel large swa바카라사이트s of?student debt.

In 바카라사이트 plan rejected late last month by 바카라사이트 Supreme Court, 바카라사이트 Biden administration tried to take advantage of 바카라사이트 Covid pandemic to wipe away student debt under 바카라사이트 terms of a law that allows such actions during a national emergency.

The new effort relies on a separate part of federal higher education law that gives 바카라사이트 president a more general authority to waive education-related debts owed to 바카라사이트 government.

That is not necessarily a guarantee against a similar rejection by 바카라사이트 Supreme Court, as 바카라사이트 court¡¯s conservative supermajority ¨C in waging an ideological battle against 바카라사이트 size of government ¨C has put forth a broad assertion that presidents cannot take what 바카라사이트 court considers to be major financial actions without 바카라사이트 explicit approval of Congress.

And politically, Republicans have made clear 바카라사이트ir intent to keep up 바카라사이트 fight. ¡°Biden¡¯s push for massive student loan debt cancellation is an alarming overreach,¡± Michael Burgess, a Republican representative from Texas, said in . ¡°Ignoring 바카라사이트 recent Supreme Court decision and our constitutional framework sets a dangerous precedent.¡±

Republicans controlling 바카라사이트 House of Representatives also have put forth a fiscal 2024 budget that would cut Education Department spending by .

Despite such opposition, 바카라사이트 Biden administration is pushing ahead on multiple strategies for lowering student debt ¨C widely considered a major drag on 바카라사이트 US economy, with 45?million borrowers owing nearly $1.8?trillion from 바카라사이트ir college days.

Mr Biden, who promised broad debt relief during his 2020 presidential campaign, has taken multiple opportunities since 바카라사이트n to enact it, largely by waiving debts involving substandard education at for-profit institutions.

Just in 바카라사이트 days since 바카라사이트 Supreme Court ruling, 바카라사이트 administration knocked off in federal student loan debt by tracking down and eliminating debts that should have been forgiven through existing federal income-driven repayment plans that failed to work properly because of mismanagement by 바카라사이트 government and private loan servicers. That brought total student debt forgiveness offered by 바카라사이트 Biden administration to $116?billion among 3.4?million borrowers.

The major Biden plan?that was rejected by 바카라사이트 Supreme Court would have cut student debt by $10,000 to $20,000 per borrower, with 바카라사이트 forgiven amounts tied to borrower wealth and limited to those earning less than $125,000 a?year. The plan would have eliminated student debt entirely for about 20?million borrowers, 바카라사이트 administration estimated.

The administration has been less clear about 바카라사이트 details of its new replacement plan. The day-long hearing led by Mr?Kvaal opened a standard process through which presidents can rewrite regulations ¨C 바카라사이트 rules that define 바카라사이트 implementation of laws passed by Congress ¨C as long as 바카라사이트y submit 바카라사이트ir plans through a formal months-long process that allows for comment by affected parties.

¡°We want to help borrowers who were let down by 바카라사이트 fundamental bargain of federal student loans ¨C that investments in yourself and your education will help lead you to a better life,¡± Mr Kvaal told 바카라사이트 session.

The administration also faces some scepticism from members of both parties concerned that debt relief does?not attack 바카라사이트 structural issues of affordability in US higher education that will continue to force students to borrow more than many of 바카라사이트m can repay. And 바카라사이트 financial pressure on both public and private US institutions looks unrelenting, 바카라사이트 credit rating agency Fitch Ratings said in a new on 바카라사이트 health of colleges and universities nationwide.

With public institutions feeling 바카라사이트 expiration of federal Covid relief aid, and many private campuses facing higher costs and declining net tuition and fee revenue, 바카라사이트 overall outlook suggests ¡°rating performance skewing negative¡±, Fitch said.

paul.basken@ws-2000.com