President Biden has quickly pivoted to Plan B after the U.S. Supreme Court struck down his student-loan forgiveness plan. Mr. Biden announced Friday that he’ll enact a different student debt-relief program under a 1965 law, the Higher Education Act.
Mr. Biden had centered his debt forgiveness plan around the 2003 Higher Education Relief Opportunities Act, which requires the existence of an emergency crisis situation such as the COVID-19 pandemic to cancel student loan debt.
The Higher Education Act requires no such conditions and has been used to cancel student debt in limited cases. However, there are no assurances that invoking the Higher Education Act won’t meet the same fate as Mr. Biden’s previous plan.
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