Pres. Joe Biden is moving forward with a new plan to provide student debt relief in wake of Fri.'s Supreme Court decision.
What happened? The Court on Fri. struck down Biden's student debt relief plan, halting relief for 43M+ debtors. (AP)
Pres. Biden's relief plan would have forgiven up to $20K+ in student debt for nearly 43M+ eligible borrowers. (NBC News)
The Biden administration used a 2003 law known as the HEROES Act to authorize its student debt relief plan. (NBC)
What is the HEROES Act? The law allows the government to "waive or modify" student debt during "national emergencies." (AP)
In a 6–3 decision, the Court rejected the Biden administration's usage of the law, striking down the program.
Biden on Fri. announced that he was moving forward to cancel debt using a different federal law: the Higher Education Act.
What is the Higher Education Act? Enacted in 1965, the HEA governs federal aid programs for higher education. (NYT)
The HEA also grants the Department of Education the power to "enforce, pay, compromise, waive, or release" student debt.
According to Insider, the Dept. of Education on Fri. filed paperwork to use the 1965 law to cancel student debt.
Biden on Fri.: "This new path is legally sound. It’s going to take longer, but [...] it’s the best path that remains."