The announcement comes two weeks after the Supreme Court struck down Biden’s plan to cancel up to $20,000 of student debt for borrowers across the country under the HEROES Act, which would have delivered relief to tens of millions of borrowers. Now, advocates are demanding that Biden pursue other avenues of broad-based student debt relief — and that he do it quickly, before the student loan payment pause comes to an end in October.
IDR has long been criticized by debt advocates for failing millions of borrowers. Even with Friday’s announcement, advocates are pointing out that the administration has still left potentially millions of borrowers behind who qualify for relief under IDR. “As costly payments are set to resume, the Biden administration should accelerate their timelines on delivering relief,” Braxton Brewington, Debt Collective spokesperson, said in a statement to. “The Department of Education must use its authority to eliminate all student debt for people who have been in failed repayment plans for more than two decades — which means nearly 4 million more borrowers need IDR account adjustments today.
Student Borrower Protection Center Deputy Executive Director Persis Yu said that the announcement only comes after the program already failed borrowers. “[M]ake no mistake — over 804,000 people are receiving relief with this action because of 804,000 failures—and this is only the tip of the iceberg.
a set of moves aimed at further pursuing cancellation, including “initiat[ing] a rulemaking process” to explore relief under the Higher Education Act and creating an “on-ramp” to lessen pressure on borrowers in the first 12 months after payments restart.
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