President Joe Biden’s latest attempt at student debt relief has faced scrutiny after his initial plan was blocked by the Supreme Court last summer. The U.S. Department of Education has outlined a new relief package that aims to target specific groups of borrowers in order to withstand legal challenges. This article will delve into the details of Biden’s revised plan and analyze why the administration believes it will succeed.
Unlike his previous proposal, which sought to forgive $400 billion in student debt for nearly all federal loan borrowers, Biden’s new plan is more targeted. The administration is focusing on specific groups, such as borrowers who have been in repayment for decades or attended low-value schools. By narrowing the scope of the relief package, the administration hopes to gain support from a skeptical Supreme Court while ensuring that more than 25 million borrowers can still benefit from the program.
One significant change in Biden’s new plan is the legal basis on which it stands. Instead of relying on the HEROES Act of 2003, which grants the president broad powers to revise student loan programs during national emergencies, the administration is now using the Higher Education Act (HEA) as its justification. Signed into law by President Lyndon B. Johnson in 1965, the HEA allows the Education secretary to waive or release borrowers’ education debt. This shift in legal strategy may help bolster the plan’s chances of surviving potential legal challenges.
Despite the administration’s efforts to tailor the relief program and navigate through a different legal framework, critics remain skeptical. Missouri Attorney General Andrew Bailey, a Republican, has openly criticized Biden’s revised plan, accusing the president of overstepping constitutional boundaries. Bailey’s remark, “See you in court,” underscores the contentious nature of the debate surrounding student debt relief. The outcome of this legal battle could have far-reaching implications for millions of borrowers seeking relief.
In an attempt to strengthen the legal standing of the new relief plan, the Biden administration has turned to negotiated rulemaking. This more involved regulatory process aims to make it harder for the courts to strike down the proposed relief. By seeking authorization from Congress and issuing regulations under the HEA, the administration hopes to demonstrate a thorough and transparent approach to addressing the student debt crisis. Higher education expert Mark Kantrowitz believes that federal agencies may benefit from some deference from the courts when it comes to regulatory authority, which could play a crucial role in the outcome of the legal challenges ahead.
The Biden administration’s latest student debt relief plan represents a strategic shift in approach, both in terms of targeting specific borrower groups and utilizing a different legal framework. While the administration remains optimistic about the plan’s prospects, criticisms and legal challenges persist. The outcome of this ongoing debate will not only impact millions of borrowers but also set a precedent for future efforts to address the growing student debt crisis in the United States.