Is there a student loan forgiveness backup plan? President Biden is working on one

Jul 5, 2023, 9:30 PM | Updated: Sep 11, 2023, 11:41 am

What is Bidenomics?...

President Joe Biden speaks in the Roosevelt Room of the White House, Friday, June 30, 2023, in Washington. The Biden administration is moving forward on a new student debt relief plan after the Supreme Court struck down his original initiative to provide relief to 43 million borrowers. (AP Photo/Evan Vucci)

(AP Photo/Evan Vucci)

SALT LAKE CITY — Last week, the US Supreme Court, in a 6-3 decision, overturned President Biden’s student loan forgiveness plan.

In some cases, the plan eliminated up to $10,000 to borrowers. It also eliminated up to $20,000 for people who had taken out Pell grants and their income was under $125,000.

Anne Flaherty, ABC News senior national policy reporter, tells KSL NewsRadio of President Biden’s latest plan.


“So, one of the things he talked about is he is going to try and resurrect his program,” she said. “But using a different legal authority.”

Because of the pandemic, Flaherty says President Biden had tried to connect his program to the 2003 Heros Act. With this piece of legislation, the Secretary of Education could essentially wave or modify loans if an individual was going off to war.

“So, he used that law to try and support his program,” Flaherty said. 

After the Supreme Court made its ruling last week, the president is now turning to the 1965 Higher Education Act to support his plan.

“Now this is something that set up the loan program to begin with,” she said. “And it does give the Education Secretary the power to waive and modify loans.”

However, Flaherty says nothing has changed with the Supreme Court.

“They don’t believe that the executive branch has this kind of power,” she said. “They said Congress still controls the purse strings.”

She says the new plan will probably take a year to “get off the ground.” Additionally, Flaherty isn’t sure if it would survive a court challenge.

Another thing President Biden is talking about is a Income Driven Repayment Plan. Flaherty says this is something that the President doesn’t need Congress’ approval for.

“He is lowering the cap that monthly payment that people have to pay these loans back,” she said. “So instead of 10 percent, you only have to pay back 5 percent of your discretionary income. That’s going to help a lot of people.”

President Biden is also talking about a grace period. The loans wouldn’t go into delinquency. However, interest would still accrue on those loans.

“So, that’s not ideal tactic to take,” Flaherty said. “If you can make these payments, you should.”  

KSL at Night can be heard weeknights from 7 to 9 p.m.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Education + Schools

The Utah Women & Leadership Project, based out of Utah State University in Logan, Utah, reports tha...

Simone Seikaly

Report finds fewer Utah workers experiencing sexual harassment

For the first time in years, the number of sexual harassment reports filed with the EEOC places Utah in line with the national average.

16 minutes ago

A FingerPrint Pad and paperwork from Clean Slate Utah is laid out at Utah Support Advocates for Rec...

Eric Cabrera

Expungement clinic held today in Salt Lake City in honor of Juneteenth

Clean Slate Utah and the NAACP Utah is holding a free Juneteenth expungement clinic today.

3 hours ago

File photo of a Utah elementary school. The School Safety Security Task Force met Monday, June 17, ...

Briana Chavez

School Safety Security Task Force discuss new requirements for schools as part of new bill

One of the biggest requirements includes a school safety needs assessment. Each school in the state must fill one out.

20 hours ago

Image of the newest version of the Salt Lake Main Library....

Kennedy Camarena

LISTEN: The end of libraries?

These days, just about everything is electronic, including books. This begs us to ask the question, could we be seeing the end of school libraries?

2 days ago

Tony Hawk is set to make an appearance at the Tony Hawk's Vert Alert skating competition....

Josuee Sanchez

Tony Hawk event sparking a desire to skate

Tony Hawk is visiting Utah for the Tony Hawk's Vert Alert skating competition, and it' sparking a desire for people to learn to skate.

4 days ago

The Utah Prison Education Project has officially accepted 15 students. They now can pursue their ag...

Emma Keddington

Utah Prison Education Project accepts first class of students

The Utah Prison Education Project has admitted 15 students in the project's first effort to help inmates earn their degree.

7 days ago

Sponsored Articles

Underwater shot of the fisherman holding the fish...

Bear Lake Convention and Visitors Bureau

Your Bear Lake fishing guide

Bear Lake offers year-round fishing opportunities. By preparing ahead of time, you might go home with a big catch!

A group of people cut a purple ribbon...


Comcast announces major fiber network expansion in Utah

Comcast's commitment to delivering extensive coverage signifies a monumental leap toward a digitally empowered future for Utahns.

a doctor putting her hand on the chest of her patient...

Intermountain Health

Intermountain nurse-midwives launch new gynecology access clinic

An access clinic launched by Intermountain nurse-midwives provides women with comprehensive gynecology care.

Young couple hugging while a realtor in a suit hands them keys in a new home...

Utah Association of Realtors

Buying a home this spring? Avoid these 5 costly pitfalls

By avoiding these pitfalls when buying a home this spring, you can ensure your investment will be long-lasting and secure.

a person dressed up as a nordic viking in a dragon boat resembling the bear lake monster...

Bear Lake Convention and Visitors Bureau

The Legend of the Bear Lake Monster

The Bear Lake monster has captivated people in the region for centuries, with tales that range from the believable to the bizarre.


Live Nation Concerts

All the artists coming to Utah First Credit Union Amphitheatre (formerly USANA Amp) this summer

Summer concerts are more than just entertainment; they’re a celebration of life, love, and connection.

Is there a student loan forgiveness backup plan? President Biden is working on one