Just hours after the Supreme Court struck down the president’s student loan forgiveness plan, the White House came back on Friday with several avenues to support borrowers.
The Biden administration is seeking to provide debt relief under the Higher Education Act of 1965 and has initiated that regulatory process. Additionally, the Education Department is creating a temporary 12-month on-ramp repayment program that removes the threat of default if borrowers miss payments once they restart in October. Third, the administration finalized a new income-driven repayment plan that it called “the most affordable repayment plan in history.”
The goal is to ease some of the financial strain many borrowers face when it comes to their student loans and is a direct response to the Supreme Court’s decision earlier Friday.