President Joe Biden is preparing to make a second attempt at large-scale student loan forgiveness, The Wall Street Journal reported.
The Supreme Court in June ruled that the Biden administration overstepped its authority in trying to cancel or reduce student loans for millions of Americans. The 6-3 decision, with conservative justices in the majority, effectively killed the $400 billion plan.
That plan would have erased up to $20,000 in student debt for borrowers earning less than $125,000 a year.
Now, with the presidential election just seven months away, the administration is poised to issue another proposal, The Journal reported Friday.
Biden plans to outline his new plan during a speech on Monday in the swing state of Wisconsin, the outlet added.
With polls showing that Biden has been losing support among young voters, the president’s team figures the debt forgiveness push could help to reverse the trend.
Even Democrat strategist James Carville ranted Sunday over his party's waning support among young voters.
"I've been very vocal about this," Carville said on his "Carville's Classroom" podcast. "It's horrifying, our numbers among younger voters, particularly younger Blacks, younger Latinos … younger people of color. Particularly males.
"We're not shedding them, they're leaving in the droves."
The new loan relief proposal, once completed, likely will face legal action from Republican attorneys general, who will again try to convince the courts to block it.
Administration officials, though, say the new plan outlines specific conditions for debt cancellation, different than the more sweeping plan that was overturned by the high court.
Just last week, a group of GOP-led states sued the Biden administration to block a new student loan repayment plan that provides a faster path to cancellation and lower monthly payments for millions of borrowers.
In a federal lawsuit filed, 11 states led by Kansas argue that Biden overstepped his authority in creating the SAVE Plan, which was made available to borrowers last year and has already canceled loans for more than 150,000.
It argues that the plan is no different from Biden's first attempt at student loan cancellation.
The new proposed plan, from the Education Department, is based on a 1965 law called the Higher Education Act, The Journal reported.
The proposal would include debt relief for borrowers with high debt loads and low incomes, and for those who have carried their debt for decades and have seen their initial loans grow due to accrued interest or are eligible for relief through other federal programs but haven’t applied.
The Associated Press contributed to this story.
Charlie McCarthy ✉
Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.
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