Recently, the US Supreme Court said “NO” to President Joe Biden’s student loan forgiveness that will help people pay their student loans.
President Joe Biden sets a new plan for student loan forgiveness. (Photo: Unsplash)
What is a Student Loan Forgiveness?
Student loan forgiveness is a program established by President Joe Biden that will help eligible individuals to pay and cancel their student loan debt. This student loan forgiveness will likely provide $400 Billion in student debt relief.
The student loan forgiveness remained unchallenged after the US Supreme Court turned it down on Friday.
According to Forbes, Biden Administration depended on the statute in 2003 called “HEROES Act,” which can waive any student loans.
However, the SC stated that student loan forgiveness is entirely a new program and cannot be authorized.
“Under the court’s ruling, the U.S. Department of Education has been prohibited from implementing the Biden-Harris Administration’s one-time debt relief program,” said the Education Department, as quoted in the report.
New Student Loan Forgiveness Program Announced
After the program’s rejection, a new set of student loan forgiveness initiatives has been announced.
As per Yahoo! News, the Biden administration updated some of the features of the newest student loan forgiveness The coverage of this new program includes teachers, people who work in public service, police officers, and social workers.
(Photo: Sky News)
It also stated that the new student loan forgiveness falls under a different statute that authorizes the Education Department to waive any student loan obligations.
Reason also reported that in this new plan, the amount borrowers pay monthly will also be reduced, and they have an opportunity to pay only 5% of their income.
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