U.S. Secretary of Education Miguel Cardona released a statement in which he expressed disappointment in the June 30 Supreme Court ruling striking down President Joe Biden's student-loan relief plan. He also stated the EDU is determined to help borrowers through a regulatory process.
Cardona said in the statement that "the Supreme Court ruled against students and families across the country" when it voted 6-3 to invalidate Biden's one-time debt relief plan, which would have provided up to $20,000 in one-time relief to more than 40 million student loan borrowers. The Court ruled the Secretary of Education does not have the authority to forgive student debt without Congressional approval.
"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," Cardona said in the statement.
Cardona said in the statement that the EDU had started a regulatory process for debt-relief assistance "so we can help the working- and middle-class borrowers who need it most."
"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," Cardona said in the statement.
He outlined steps the department is taking, including its Saving on A Valuable Education (SAVE) plan, "which will be the most affordable repayment plan in history," Cardona said in his statement. The plan will lower monthly payments for some low-income borrowers to zero dollars and save the rest $1,000 or more per year, as well as control interest rates, according to the statement.
The EDU's Federal Student Aid Office released a copy of Cardona's letter to borrowers, which states borrowers who earn less than $32,800 per year, or $67,500 for a borrower in a family of four, would be eligible for the zero-dollar monthly payments.
In the letter, Cardona wrote that in addition to the relief program being struck down by the Supreme Court, the pause on student-loan repayment had been ended by Congress. Payments are due beginning in October, with interest accruing beginning Sept. 1.
"To help borrowers successfully return to repayment, the Department is creating a temporary on-ramp to protect borrowers from the worst consequences of missed, late, or partial payments, such as negative credit reporting," Cardona wrote. "However, borrowers who can make their payments should do so."
Cardona wrote in a July 11 tweet that the administration "inherited a broken student loan system, and we will not stop the fight to fix it."
"We will not stop fighting to make sure that student debt is not a barrier for Americans to access college or economic opportunity," Cardona wrote in his letter to borrowers. "We will continue to put the needs of students and borrowers first, help borrowers access the support and resources they need, and make the promise of college a reality for more American families."
