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Biden Admin Says SCOTUS 'Got It Wrong' After Striking Down Student Loan Forgiveness

'While We Disagree With The Court’s Decision, Our Administration Will Not Stop Fighting To Provide Debt Relief To Borrowers'

In an email to students, the Biden administration has responded to the Supreme Court of the United States (SCOTUS) late-June decision against the proposed student debt forgiveness.

“On June 30th, the Supreme Court issued a decision invalidating the Biden-Harris Administration’s student debt relief plan to provide up to $20,000 in one-time relief to more than 40 million student loan borrowers,” reads the email from Secretary of Education Miguel A. Cardona. “We believe the Supreme Court got it wrong.”

The letter notes how “critical” student debt relief would have been for students.

“This decision from the Supreme Court means that the Administration cannot move forward with the one-time student debt relief plan announced last year,” the letter continues. “The Department had already approved applications for more than 16 million borrowers, and if you are one of those borrowers, we are unable to provide you with relief under this program due to the Court’s ruling.”

“While we disagree with the Court’s decision, our Administration will not stop fighting to provide debt relief to borrowers,” the letter reads. “We will use every tool at our disposal to do so.”

The letter details the Biden administration’s efforts to create an “alternative path” for debt forgiveness for middle-class borrowers.

“We started the process to provide relief to as many people as we can, as fast as we can, through the rulemaking process,” the letter details. “Under the law, this path will take time, but we are determined to keep fighting for borrowers and we will keep you updated in the months ahead.”

The administration also plans to implement the “Saving on a Valuable Education (SAVE) Plan in which borrowers will ’save money’ as the plan seeks to cut monthly payments to $0 for borrowers making under $32,800 a year.”

“Additionally, it will stop runaway interest that leaves borrowers owing more than their initial loan,” reads the letter. “Eligible borrowers can enroll in the REPAYE plan today and the Department will automatically enroll them in the SAVE plan and update their monthly payments as the new terms are implemented later this summer.”

The letter also revealed the student loan payment pause, which was enacted during the COVID-19 pandemic over three years ago, will begin accruing interest on Sept. 1 as payments must resume in October.

“To help borrowers successfully return to repayment, the Department is creating a temporary on-ramp to protect borrowers from the worst consequences of missed, late, or partial payments, such as negative credit reporting. However, borrowers who can make their payments should do so.”

The letter encourages students who will owe payments this October to visit to identify repayment plans.

“We will not stop fighting to make sure that student debt is not a barrier for Americans to access college or economic opportunity,” the letter concludes. “We will continue to put the needs of students and borrowers first, help borrowers access the support and resources they need, and make the promise of college a reality for more American families.”

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