Header Ads

Joe Biden is offering an alternative student debt plan designed to ease borrowers’ threat of default if they fall behind on their payments.

    



Let me begin by saying I know there are millions of Americans, millions of Americans in this country who feel disappointed and discouraged or even a little bit angry about the course 

decision today on student debt. And I must admit I do too. So let me be clear. For Republicans in Congress, it's not about reducing the deficit. It's not about fairness and forgiving loans. 

It's only about forgiving loans that they have to pay. Today the Supreme Court sided with them. I believe the court's decision to strike down my student debt relief program was a mistake, 

was wrong. I'm not going to stop fighting to deliver borrowers what they need, particularly those at the bottom end of the economic scale. So we need to find a new way. And we're moving as fast as we can. 

First, I'm announcing today a new path consistent with today's ruling to provide student debt relief to as many borrowers as possible as quickly as possible. We will ground this new approach in a different law than my original plan, the so -called Higher 

Education Act. That will allow Secretary Cardona, who's with me today, to compromise, waive, or release loans under certain circumstances. This new path is legally sound. It's going to take longer. 

But in my view, it's the best path to be managed, providing for as many borrowers as possible with debt relief. I'm directing my team to move as quickly as possible on this law. We know that figuring out how to pay these added expenses can take time for borrowers, 

and they might miss payments at the front end as they get back into repayment. Normally, this could lead borrowers to fall into delinquency and default. But without their financial security, and that's not good for them or the economy. 

That's why we're creating a temporary 12 -month, what we're calling, on -ramp repayment program. And this is not the same as a student loan pause. It's been in effect for the past three years. 

Monthly payments will be due. Bills will not go out, and interest will be accruing. And during this period, if you can pay your monthly bills, you should. But if you cannot, if you miss payments, this on -ramp will temporarily remove the threat 

of default or having your credit harm, which can hurt borrowers for years to come. Today's decision has closed one path. Now we're going to pursue another. I'm never going to stop fighting for you. 

We'll use every tool at our disposal to get you the student debt relief you need and reach your dreams. It's good for the economy. It's good for the country. It's going to be good for you. 


 

No comments

Powered by Blogger.