In response to the conservative majority Supreme Court’s decision on June 30, United States President Joe Biden has unveiled a revised plan to address the mounting student loan crisis. The new proposal aims to utilize the Higher Education Act to cancel a substantial portion of the outstanding debt. Of the $1.7 trillion in student loan debt accumulated thus far, the Biden administration plans to cancel $430 billion.
While President Biden contends that the alternative plan aligns with the Supreme Court ruling, it still faces the potential for legal challenges. As the fate of millions of American borrowers hangs in the balance, with the possibility of having to resume loan repayments once the repayment pause is lifted, the situation remains uncertain and subject to ongoing developments.