Biden outlines ‘new path’ to provide student loan relief after Supreme Court rejection

(ABC NEWS)—President Joe Biden said Friday his administration is moving forward with a new student loan relief plan after the Supreme Court struck down his original program to wipe out $430 billion in debt.

Biden detailed the next steps in remarks delivered at the White House, where he was joined by Education Secretary Miguel Cardona.

“This new path is legally sound,” the president said. “It’s going to take longer. And in my view, it’s the best path that remains to student debt relief to as many borrowers as possible as quickly as possible.”

Under the alternative strategy, Biden said the administration will invoke the Higher Education Act to allow Secretary Cardona to “compromise, waive or release loans under certain circumstances.”

In the meantime, Biden said they also have a plan to help alleviate the financial stress as loan payments restart in October after a three-year pause.

The administration will create a temporary, 12-month “on-ramp repayment program” that will remove the threat of default for borrowers who are unable to pay their bills.

“Today’s decision has closed one path, now we’re going to pursue another,” Biden said. “I’m never going to stop fighting for you.I I will use every tool at our disposal to get you the student debt relief you need and reach your dreams. It’s good for the economy and good for the country and can be good for you.”

In a 6-3 decision earlier Friday, the Supreme Court’s majority said the administration overstepped its authority when it moved to waive $430 billion in debt for millions of eligible Americans.

The program would have forgiven up to $10,000 in federal student loan debt for borrowers making less than $125,000 a year. Borrowers who took out Pell grants to pay for college could have had up to $20,000 canceled.