The Biden administration is reportedly gearing up for a second round of student loan forgiveness for millions of Americans after its initial attempt was struck down by the Supreme Court. According to sources, proposed regulations for broad student debt relief are expected to be unveiled as early as next week, with the aim of starting to cancel waves of student debt leading up to the November election.
President Biden's first plan, which sought to provide up to $20,000 in debt relief to borrowers earning less than $125,000, was rejected by the Supreme Court last year due to lack of authority. Despite this setback, Biden has already wiped out nearly $138 billion in federal student loans for almost 3.9 million borrowers through alternative actions.
The upcoming debt cancellation initiative is seen as a response to Biden's struggle to connect with younger voters compared to his previous presidential campaign. However, the administration faces legal challenges, as evidenced by a recent U.S. appeals court decision blocking a rule that would simplify the process for defrauded students to have their loans forgiven.
The court ruled that the Department of Education had overstepped its authority in adopting the regulation, echoing concerns about the administration's attempts to bypass the Supreme Court's previous ruling against canceling a significant amount of student loan debt.
