The Biden administration is determined to keep fighting for assistance for millions of Americans suffering under debts that sometimes exceed $100,000 after the Supreme Court rejected his student loan forgiveness program in June.
The court decided 6-3 against the Biden administration’s plan to cancel up to $400 billion in student loans, ruling that the president overstepped his jurisdiction.
The Biden administration made a new program that will automatically forgive $39 billion in student loan debt for 804,000 Americans public on Friday, July 14.
The plan could be the first of several initiatives the Biden administration plans to take ahead of the 2024 election to reassure Americans that he wants to follow through on his initial goal. Biden’s most recent proposal, which is significantly different from his first one, aims to address inconsistencies in a system that is supposed to eradicate any debts that remain after 20 or 25 years of regular payments have been made.
Depending on the type of loan, payments that should have brought a borrower closer to the 20 or 25-year cutoff point were frequently not taken into account, according to the Biden administration. Theoretically, system flaws would prevent some Americans who have made loan repayments from receiving the expected debt cancellation.
According to the Biden administration, payments that should have gotten a borrower closer to the 20 or 25-year cutoff point were regularly ignored depending on the type of loan. Theoretically, system problems might keep some Americans who have paid back loans from getting the anticipated debt forgiveness.
According to a statement from the Department of Education, “the upcoming discharges are a result of fixes implemented by the Harris-Biden Administration to ensure that all borrowers have an accurate count of the number of monthly payments that qualify toward forgiveness under income-driven repayment (IDR) plans.”
The adjustment is being made in an effort to “address historical failures” in the Biden administration of the Federal Student Loan Program, the statement continued.