On Monday, President Biden will present yet another student loan distribution proposal in his continued effort to evade the Supreme Court.
The court has rejected previous iterations of Biden’s ideas for a student debt rescue, and 11 Republican-led states have sued him over the version he proposed in February. The Wall Street Journal projects that the new Biden plan will benefit up to 30 million Americans by significantly reducing their student debt before the November election.
On Monday, Biden will present the concept at a public event in Wisconsin.
The plan’s fundamental pillar focuses on reducing debts that have exceeded their principal due to interest. According to the WSJ, borrowers and couples earning less than $120,000 or $240,000 would be able to reduce all accrued interest over the principal amount by up to $20,000.
As a result, approximately 23 million Americans’ loans would be reduced to their original amount.
The measure would also eliminate debt for debtors who had clung onto their debts for decades without properly repaying them. According to the Wall Street Journal, the forgiveness would apply to any undergraduate debt that is more than 20 years old, as well as any graduate debt that is more than 25 years old.
The new proposal will undoubtedly face legal challenges from Republican states around the country. Kansas Attorney General Kris Kobach filed a lawsuit in late March with ten other states to halt Biden’s student loan program, which he inaugurated in February.
Kansas was one of six states to successfully challenge Biden’s original student loan forgiveness scheme last year. Kobach claims that the current program contradicts the Supreme Court’s 2023 decision and violates many of the same rules.
“Not since the civil war has a president told the Supreme Court, ‘Yeah, you blocked me, but I’m going to do it anyway.'” In an interview, Kobach told Fox News Digital. “Biden is trying to twist federal law once again, and his new plan is just as illegal as the old plan.”
Alabama, Alaska, Idaho, Iowa, Louisiana, Montana, Nebraska, South Carolina, Texas, and Utah are among the states joining Kansas in its case.
