The president’s unilateral bid to buy support plowed forward, ignoring a Supreme Court ruling on erasing billions in student debt.
Furthering the cause of Marxism and shoring up a force of zero-liability voters ahead of the 2022 midterm elections, President Joe Biden had promised, beyond his powers, that he would wipe the slate clean for millions of student loan borrowers. Now, after a June Supreme Court decision asserted no such authority existed for the executive, $127 billion remained flagged for erasure as his administration eyed alternative legal avenues to advance his agenda to include more debt.
According to a report from the Wall Street Journal, “Since taking office in 2021, the Biden administration has arranged to cancel loans equal to around 30% of the total projected cost of its blocked mass cancellation plan.”
“Not all of the $127 billion in relief has been fully processed by the Education Department and loan servicers, creating confusion for borrowers who must now figure out whether they still have outstanding student loan debt,” the Journal continued. “That issue has become more pressing in recent weeks as payments and interest accrual restart after a pandemic-era freeze that lasted more than three years.”
In early October, the U.S. Department of Education had announced an additional $9 billion in “student debt relief” as their current “approved” cancelations covered 3.6 million borrowers. That wave of relief included borrowers under Public Service Loan Forgiveness programs, adjustments to income-driven repayment plans and forgiveness for individuals with total or permanent disabilities.
Monday, a new regulatory plan was announced to continue seeking legal ways to skirt the Supreme Court’s ruling, kicking off several months of negotiations. The drafted plan sought to cancel debt for four groups of borrowers that included: those with federal student loan debt exceeding their original borrowed amount; loans where repayment began more than 25 years ago; “unreasonable debt loads” brought on by career-training programs that offered “insufficient earnings” or from “institutions with unacceptably high student loan default rates; and anyone eligible for loan forgiveness programs to which they had otherwise not applied.
“President Biden and I are committed to helping borrowers who’ve been failed by our country’s broken and unaffordable student loan system,” said U.S. Secretary of Education Miguel Cardona in the latest press release. “These draft proposals would build on the historic $127 billion in loan forgiveness the Biden-Harris Administration has already approved for nearly 3.6 million borrowers. We are fighting to ensure that student debt does not stand in the way of opportunity or prevent borrowers from realizing the benefits of their higher education.”
The flagged amount is well shy of the original intended nearly $400 billion in debt the Biden administration had wished to unilaterally erase.
As to the new regulatory proposals, negotiators from “16 affected constituency groups” are slated to meet with the Education Department during a Nov. 6 and Nov. 7 session where public comment will also be heard for up to one hour on each day.
“Through this process, the Department will continue to refine regulatory text in advance of the third session December 11 and 12,” the release detailed.