April 7, 2024

Biden poised to unveil latest attempt at student loan forgiveness after prior SCOTUS smackdown

When it comes to keeping one of his most controversial campaign promises from the 2020 campaign, President Joe Biden appears to be pursuing a philosophy of “try, try again.”

As Fox Business reports, the White House is poised to announce another effort at achieving substantial student loan forgiveness, despite the U.S. Supreme Court's decision striking down an earlier attempt.

Second bite at the apple

The Wall Street Journal last week reported that, according to sources close to the situation, the Biden administration is preparing to unveil new regulations that would facilitate large-scale debt bailouts.

According to the outlet, “the president's advisers hope to use the rules to begin canceling waves of student debt in the run-up to the November election.”

Previously, in a move to fulfil what many viewed as a critical campaign promise to younger voters, the administration tried to roll out another debt forgiveness plan that would have offered upwards of $10,000 in relief to borrowers earning less than $125,000 annually, or households with incomes under $250,000.

Another additional $10,000 could have potentially been forgiven for lower-income borrowers who had received Pell Grants, as the Associated Press noted at the time.

However, the high court struck down that concept, determining that the White House lacked the authority to make such sweeping cancellations without an act of Congress.

Biden, undeterred

Following the Supreme Court's rebuke last summer, Biden pledged that he would “stop at nothing to find other ways to deliver relief to hard-working middle-class families.”

To that end, he has engaged in various, targeted initiatives to eliminate roughly $138 billion in outstanding debt for nearly 3.9 million borrowers, doing so without the involvement of Congress.

Many view Biden's imminent announcement as something of a desperate move designed to stop the bleeding in terms of the lagging support among younger voters as the November election draws nearer.

Though the precise contours of Biden's new plan remain to be fully understood, it seems all but certain that any such initiative will be subject to court challenge almost immediately.

Whether Biden's seemingly cynical gambit to curry favor with a key segment of the electorate ahead of his face-off with Donald Trump, only time will tell.

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