Today, U.S. Secretary of Education Miguel Cardona issued the following statement on the Supreme Court's ruling on the Biden Administration's one-time student debt relief plan:
"Today, the Supreme Court ruled against students and families across the country. It's an outrage that lawsuits brought on by Republican elected officials have blocked critical student debt relief that would have been a lifeline for more than 40 million Americans—nearly 90 percent of whom make less than $75,000 a year.
"President Biden, Vice President Harris, and I will never stop fighting for borrowers, which is why we are using every tool available to provide them with needed relief. Earlier today, the Department of Education initiated a regulatory process to provide debt relief, so we can help the working- and middle-class borrowers who need it most.
"Additionally, today the Department finalized our new income driven repayment plan, Saving on A Valuable Education (SAVE), which will be the most affordable repayment plan in history. It will cut monthly payments to zero dollars for millions of low-income borrowers, save all other borrowers at least $1,000 per year, and stop runaway interest that leaves borrowers owing more than their initial loan.
"Finally, the Department is providing a 12-month on-ramp transition period that will help ensure borrowers smoothly and successfully return to repayment without falling into delinquency or default. Borrowers who can make payments should do so as payments will resume and interest will accrue, but the on-ramp to repayment will help borrowers avoid the harshest consequences of missed, partial, or late payments like negative credit reports and having loans referred to collection agencies.
"In addition to today's actions, our Administration will continue the critical work we have pursued under President Biden's leadership to make college more affordable to more Americans and make long-overdue improvements to the student loan system. President Biden, Vice President Harris, and I remain fully committed to ensuring students can earn a postsecondary education, and build fulfilling careers without the burden of student loan debt blocking them from opportunity."
Find out more information about the actions taken by the Biden-Harris Administration today HERE.
Find out more about the Saving on A Valuable Education (SAVE) Plan HERE.