It’s been four months since the Supreme Court blocked President Joe Biden’s plan to forgive up to $20,000 in student debt for most people with federal loans. Now, the administration has come out with a new, very different student debt relief plan.
It’s still in the early stages and will need to go through a whole rule-making process, but if some version of it is finalized, it could offer a new path to loan forgiveness for a lot of people.
“It’s the White House trying to take another bite at apple from a different angle where they might have surer footing from a legal perspective,” said Betsy Mayotte at the nonprofit Institute of Student Loan Advisors.
It will likely be about a year — maybe a little less, maybe little more — before anything is finalized, she said. “This is not a done deal, and the proposals could change significantly before it is a done deal.”
Plus, any final rule could be challenged in court, Mayotte added.