Chairperson by Joe Biden Education Minister, Miguel Cardonaunveiled the next steps to provide student debt relief and the Biden Administration’s “plan B” before student loan payments resume in October.
RELATED: Still Not Finished! Biden administration clears $39 billion in student loans after SCOTUS rejects original plan
Biden’s Education Secretary Discusses ‘Plan B’ After Supreme Court Ends Student Loan Forgiveness
Cardona spoke exclusively with TSR News’ Justin Carter about such an implementation as the start of student loan payments approaches. Interest is set to accrue again starting September 1.
“I feel sad for the 43 million people who really need that relief,” Cardona said. “Those are the people we are fighting for. If we could support banks, airlines, small businesses and even some congressmen who have complained about debt forgiveness… we would. [need to] provides debt relief for those trying to make a living.
The interest-free payment ‘delay’, which has lasted three years through nine renewals, began as an emergency measure over the COVID-19 pandemic in March 2020 under President Trump.
Now, it could take more than a year for Biden to finalize and implement a new student debt forgiveness plan, according to Insiders.
Biden administration still erases $39 billion in student loans for more than 800,000 people
However, about two weeks after the Supreme Court rejected the original pardon plan, the Biden Administration is still removing up to $39 billion in student loans for 804,000 people, Shade room reported earlier this month.
Meanwhile, Cardona said the aforementioned relief is ongoing and available. However, borrowers need to know if they qualify.
“800,000 people received an email last Friday saying they had paid off their loans and been forgiven,” Cardona said. “I think it’s important for people to know that we will continue to fight for targeted debt relief for those who have earned it.”
According to Cardona, the White House has released a document showing that California, Florida and Texas have the highest income-based payment plans currently eligible for forgiveness.
Cardona added that most public servants are unaware that their loans could have been wiped out if they had worked in the public sector and paid off their loans for at least a decade.
“A lot of your listeners are civil servants. They might not even know that we fixed the public debt forgiveness system, saying that if you pay your loans in ten years and you have worked in the public service for ten years, your loans will be written off,” Cardona noted.
We are continuing to offer important student debt reliefs to students and families. Today, @usegov is releasing state-by-state data on more than 800,000 borrowers who earned $39 billion in auto loan relief through fixes to Income-Based Repayment plans.https://t.co/tD5KVoFeQc pic.twitter.com/5NAB6lxhQH
– Minister Miguel Cardona (@SecCardona) July 18, 2023
$45 billion loan forgiveness allotted to civil servants, $5 billion for federal workers with disabilities
Justin Carter reports that’s about $45 billion in debt forgiveness for public servants. That includes firefighters, police, teachers and social workers.
And $5 billion was earmarked for federal workers with disabilities, according to the Carter report. Another $22 billion was allocated to students scammed by now defunct schools like ITT Tech and Corinthian College.
Cardona said President Biden is living up to his promise after saying earlier: “This fight isn’t over.”
If you call back, Shade room reported late last month that the Supreme Court had canceled President Biden’s plan to cancel $400 million student loan debt on June 30.
It has claimed the administration has no legal right to cancel student loan debts.
“I’m one of those borrowers who have paid off a student loan for 28 years,” says @DonnaFEdwards about Administrator Biden’s new student debt relief plan. “It’s really a burden that no American family should continue to bear after paying off their loans for 20 years.” pic.twitter.com/SSPt3oSARo
– Last Call (@LastCallCNBC) July 15, 2023
Supreme Court finds Biden exceeded authority with Student Debt Relief Plan, Cardona disagrees
Dissident Justice Elena Kagan argued that the court found the money to support Biden’s plans to be “excessive,” according to Washington Post. The decision was made even though Congress had previously approved the pardon plan.
However, Cardona says the president has authority under the HERO Act. However, “the Supreme Court sees the matter differently.”
“We have legal scholars, independent legal scholars who believe we also have authority. But we’re dealing with another Supreme Court, as the president said. We won’t continue if we don’t think we have the authority to do this.”
Cardona added that Republicans will likely continue to sue to block the president’s debt forgiveness plan. However, “That doesn’t mean we stop fighting,” he said.