The Supreme Courtroom’s ruling on scholar loans “misconstrued” the Structure.
WASHINGTON — President Joe Biden said Friday he would revisit his student debt relief program and enshrine it in the Higher Education Act after the U.S. Supreme Court ruled against his original plan to allow up to $20,000 per borrower enacted
“I believe the court’s decision was a mistake, it was wrong,” Biden said at the White House. “We have to find a new way and move forward as quickly as possible.”
The Supreme Court on Friday ruled 6-3 against Biden’s plan to cancel student loan debt for an estimated 40 million Americans. The company would have forgiven over $400 billion in student loan debt, making it one of the costliest executive actions in history.
Biden cited former President Donald Trump’s approval of the Paycheck Protection Program, which cost an estimated $760 billion.
“The hypocrisy is breathtaking,” Biden said. “You can’t help a family make $75,000 a year, but you can help a billionaire and cancel his debt? Not only would my plan have changed the lives of millions of Americans, but it would have been good for the American economy.”
Biden said Friday he also ordered the U.S. Department of Education to implement a 12-month “start-up period” that would grant forgiveness for missing initial payments to borrowers who are struggling to adjust to repayments after the three-year hiatus.
Biden stressed that it was not an extension of the hiatus because payments would still be due and interest would accrue, but the Department of Education would not report missed payments to credit bureaus for the first year.
Last summer, Biden announced his plan to forgive $10,000 in student debt for borrowers earning less than $125,000 or married couples earning less than $250,000. Pell grant recipients were eligible for an award of up to $20,000 under the proposal.
Friday’s Supreme Court ruling resets millions of student borrowers to zero as the October payment pause imposed at the start of the Covid-19 pandemic comes to an end. During the pause introduced under the Trump administration, borrowers did not have to make payments on their loans, nor did the loans accrue interest.
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Biden called the Supreme Court’s decision a mistake.
“I think the court misread the Constitution,” Biden said.
It’s the second time in as many days that the president has criticized the Supreme Court for its rulings, building on comments he made Thursday in response to the court’s decision to bar the use of affirmative action in college admissions. When asked if it was a “rogue dish,” Biden told reporters, “It’s not a normal dish.”
Later Thursday on MSNBC’s “Deadline: White House,” Biden said the current Supreme Court “has done more to uncover fundamental rights and fundamental decisions than any other court in recent history.”
“I think some in the court are starting to realize that their legitimacy is being challenged in a way that hasn’t been seen in the past,” the president said.