Supreme Court’s student loan ruling dealt Biden a setback. Here’s his new plan
LA TimesWhen President Biden announced his plan to cancel up to $20,000 in federal student loans for some borrowers last August, he framed it as part of a multipronged approach to ease the burden on loan holders and prevent a wave of defaults. The Biden administration now faces an unprecedented task: helping tens of millions of borrowers make payments in a student loan system that’s been dormant for three years. When Biden announced his student loan debt cancellation plan last year, he said, “By resuming student loan payments at the same time as we provide targeted relief, we’re taking an economically responsible course.” Under the blocked plan, the Department of Education would have forgiven up to $10,000 in federal student loan debt for people making less than $125,000 a year, or $250,000 for married couples. Biden’s student loan policy has focused not on widespread cancellation but on improving the complex web of safety-net programs available to help borrowers, often by undoing policies implemented by Trump’s Education Department. But the bulk of federal student loan debt — about $1.6 trillion held by 43 million Americans — won’t be canceled anytime soon.