Biden to unveil new student loan handout that could slash debt for millions before election day
Biden's latest student loan plan is sure to face legal challenges from Republicans
Biden lambasted for circumventing Supreme Court with student loan bailout
House Education & Workforce Committee member Erin Houchin, R-Ind., criticizes the president's latest actions on 'The Evening Edit.'
President Biden will unveil yet another student loan handout plan on Monday in his ongoing attempt to circumvent the Supreme Court.
The court has struck down multiple versions of Biden's plans for a student loan bailout, and 11 Republican-led states filed a lawsuit against the version he announced in February. The new Biden plan is expected to affect up to 30 million Americans, who will see sizable portions of their student debt slashed before the November election, according to the Wall Street Journal.
Biden is scheduled to unveil the plan during a public event in Wisconsin on Monday.
The plan's central pillar focuses on cutting loans that have exceeded their principal amount due to interest. It would cut up to $20,000 in accrued interest while borrowers who make less than $120,000 or couples who make less than $240,000 would be allowed to cut all of their accrued interest beyond the principal amount, WSJ reported.
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President Biden will unveil yet another student loan forgiveness plan on Monday in his ongoing attempt to circumvent the Supreme Court. (Alex Wroblewski for The Washington Post via Getty Images) / Getty Images)
The result would see roughly 23 million Americans having their loans cut down to the principal amount.
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The plan would further cancel debt for borrowers who have held onto their loans for decades without fully paying them off. The forgiveness would apply to any undergraduate debt lasting more than 20 years and any graduate debt lasting more than 25 years, according to WSJ.
The new Biden plan is expected to affect up to 30 million Americans, who will see sizable portions of their student debt slashed before the November election, according to the Wall Street Journal. (REUTERS/Evelyn Hockstein / Reuters Photos)
The new plan is sure to face legal challenges from Republican states across the country. In late March, Kansas Attorney General Kris Kobach led 10 other states in a lawsuit blocking the student loan program Biden launched in February.
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Kansas was among the six states who successfully challenged Biden's original student loan forgiveness program last year. Kobach says the latest program flies in the face of the Supreme Court's 2023 ruling and breaks many of the same rules.
"Not since the civil war has a president told the Supreme Court, ‘Yeah you blocked me, but I’m gonna do it anyway.’" Kobach told Fox News Digital in an interview. "Biden is trying to twist federal law once again, and his new plan is just as illegal as the old plan."
Kansas was among the six states who successfully challenged Biden's original student loan forgiveness program last year. Kobach says the latest program flies in the face of the Supreme Court's 2023 ruling and breaks many of the same rules. (Getty Images)
The states joining Kansas in the lawsuit are Alabama, Alaska, Idaho, Iowa, Louisiana, Montana, Nebraska, South Carolina, Texas and Utah.