Biden's student loan forgiveness could reach voters before the election

Two federal judges in Kansas and Missouri on Monday blocked President Joe Biden's administration from implementing a new student debt relief plan that would reduce payments, at the urging of several Republican-led states.

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President Joe Biden could try to cancel the debts of millions of people federal student loan borrowers just weeks before voters at the ballot box in November will choose between him and former President Donald Trump.

In the Biden administration Unified Agenda Spring 2024The U.S. Department of Education has announced that it will publish its final regulations on student loan forgiveness sometime in 2019. October.

Because of the timeline of the regulatory changes, that would normally mean the administration wouldn't be able to implement its program until July 2025, higher education expert Mark Kantrowitz said. But the department could act sooner by simply publishing a notice in the federal registerhe noticed.

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“I expect publication [of the rule] “The bill will pass in early October, so the conflict between Democrats and Republicans over student loan forgiveness will continue well into the election,” Kantrowitz said.

An Education Department spokesperson said the Biden administration has already made historic changes to “a broken student loan system.”

“This administration is determined to help as many borrowers as possible as quickly as possible. These regulatory measures could provide financial breathing space for tens of millions of additional borrowers,” the authorities said.

Loan forgiveness is a hot topic in party politics

Republicans May Try Again to Stop Emergency Plan

Since the US Supreme Court overturned the ruling Biden’s first attempt at large-scale loan forgiveness last summer, his administration has been working on a second-chance plan. While the Education Department tried to target the aid more this time around in an effort to improve survival rates, it still could benefit 20 million people.

To critics of broad student loan forgiveness, Biden's new plan looks a lot like his first.

After Biden touted his revised relief package, Missouri's Republican Attorney General Andrew Bailey said wrote on X that the president is “openly attempting to overshadow the Constitution.”

“See you in court,” Bailey wrote.

Missouri was one of six Republican-led states – along with Arkansas, Iowa, Kansas, Nebraska and South Carolina – that court case against Biden's first large-scale debt restructuring attempt.

'Ghost debt' is flying under the radar — and could be a problem for the US economy

The red states argued that the president had overstepped his authority and that debt forgiveness would hurt lenders' profits. The conservative justices on the Supreme Court agreed with them.

Once the Biden administration releases its new student loan forgiveness plan in October, more legal challenges are inevitable, Kantrowitz said.

“Lawsuits will be filed quickly to block the final regulations after they are published,” he said.

A recent Supreme Court ruling could make it even harder for Biden's revised plan to survive these attacks.

The Supreme Court in late June rejected the so-called Chevron doctrine, a 40-year-old precedent requiring judges to defer to a federal agency’s interpretation of contested laws. The 6-3 ruling, which split the conservative court along ideological lines, is expected to undermine the federal government’s regulatory power.

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