In yet another stunning display of executive overreach, President Joe Biden clearly couldn‘t take a hint from the Supreme Court when it rejected his student debt relief plan. But now he‘s moved on to “Plan B“ in an effort to find a way around the court‘s decision.
On Friday, Biden unveiled a new plan that he‘s hoping will provide “relief“ to borrowers who are struggling with their student loan payments. But once again, the plan seems to skirt legal parameters, as it appears to rely on a dubious interpretation of the Higher Education Act in order to skirt the court‘s ruling.
Not surprisingly, Biden wasted no time blaming Republicans for setting the stage for the Supreme Court‘s decision. In a special White House statement, he said, “President Biden and Vice President Harris will not let Republican elected officials succeed in denying hardworking Americans the relief they need.”
The specifics of what the plan entails remain rather vague. In his announcement, Biden mentioned that some borrowers won‘t have to make their monthly payments and those who do pay will be eligible for a “discount“ to save them money. Additionally, he said there will be an “on–ramp“ for restarting payments so any missed deadlines won‘t be reported to credit agencies or result in additional interest or fines.
But the plan doesn‘t appear to address the main concern raised by the Supreme Court: that debt relief requires legislative approval from Congress, something which Biden is not providing. Nor does it seem to address the feelings of the majority of Americans who see the plan as a bad idea.
The proposal also raises questions about who exactly will be footing the bill. Will there be any cost sharing with the lenders who are owed the money? Or is Biden‘s plan another case of sticking the rest of America with the burden of those who failed to pay their loans? It also remains to be seen how long–term of an impact this plan will have on borrowers and lenders and the state of our economy in general.
In any case, it looks like this debate may be headed back to the courts. The Supreme Court ruled out one plan, but Biden seems determined to make sure another is implemented. It may be a long fight, but it looks like our long national nightmare is still far from over.
