Biden To Seek Alternative Path For Student Loan Relief After Supreme Court Ruling

President Joe Biden announced Friday he would seek an alternative route to provide student debt relief after the Supreme Court struck down his initial plan.

The Biden administration is pursuing a path under the Higher Education Act that would allow to the Education secretary to "compromise, waive, or release loans under certain circumstances."

The Education Department is also enacting a temporary a 12-month “on-ramp” for borrowers, with student loan repayment set to resume this fall. During the transition, borrowers could miss payments without the risk of default or their credit score being affected, though interest on the loans would still accrue.

Biden said going this route would take longer to provide student loan relief,
but that it was "legally sound" and his administration was moving "as quickly as possible."

"In my view, it's the best path that remains to provide as many borrowers as possible with debt relief," Biden said.

"I'm never going to stop fighting for you," he said.

Some debt forgiveness advocates weren't convinced after Biden spoke at the White House.

Debt Collective, which advocates for debt forgiveness, called his new plan "a worse case scenario."

"Biden is not doing everything possible," the group wrote on Twitter. “He is resuming interest and payments voluntarily.”

“The corrupt Supreme Court sucks. Republicans suck. But they aren't resuming your repayments — Biden is,” the group wrote.

The president accused the Supreme Court of misinterpreting the constitution in its ruling and of "siding" with Republicans. He also criticized GOP members of Congress who received lucrative PPP loans for their businesses during the COVID-19 pandemic. He called out some for receiving millions in relief, but then opposing his student debt relief costs.

"The hypocrisy is stunning," he said.

The Supreme Court blocked on Friday Biden's student debt cancellation plan in a 6-3 decision, the latest landmark decision this week from the conservative majority of the court.

Biden's plan would have canceled up to $20,000 in federal student loan debt for Pell Grant recipients with loans held by the Education Department while non-Pell Grant recipients would receive up to $10,000 in debt cancellation.

The roughly $400-billion plan targeted borrowers with individual incomes less than $125,000, or $250,000 for married couples. It was designed to provide relief for up to 43 million borrowers, including more than 14 million borrowers who would have their remaining balance wiped out.

The Biden administration had argued that the HEROES Act – Higher Education Relief Opportunities for Students Act of 2003 – authorized the secretary of Education to grant relief from student loan requirements during national emergencies, such as the pandemic. But the Supreme Court ruled the act provided no such authorization.

Asked if he thought he overstepped his authority with this previous plan, Biden said Friday: "The court misinterpreted the Constitution."

The president has criticized other rulings from the Supreme Court this week. After it ruled that it is unconstitutional for colleges to consider race in their application processes on Thursday, Biden said the current Supreme Court is "not a normal court."

Ben Kesslen contributed to this article.