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Joe Biden offers alternative student debt relief plan

AP / Jul 02, 2023, 00.17 AM IST

President Joe Biden vowed Friday to push ahead with a new plan to provide student loan relief for millions of borrowers while blaming Republican "hypocrisy" for triggering the day's Supreme Court decision that wiped out his original plan. Biden said payment requirements for student loans would resume in coming weeks, but that he would work under the authority of the Higher Education Act to begin a new program designed to ease borrowers’ threat of default if they fall behind over the next year. Hours after the Supreme Court ruling, Biden commented from the White House, trying to stay on the political offensive even as the ruling undermined a key promise to young voters who will be vital to his 2024 reelection campaign. Biden delivered most of his remarks in a measured tone but then raised his voice at the end when a reporter asked if he had given borrowers false hope. “I didn’t give any false hope,” he said heatedly. “The Republicans snatched away the hope that they were given.” Ticking off what he said were billions of dollars in benefits to the well-to-do under the Trump administration, he said, “These Republican officials just couldn’t bear the thought of providing relief for working class, middle class Americans.” “The hypocrisy of Republican elected officials is stunning," he said. Top administration officials said they had met for weeks to discuss how to handle the Supreme Court's expected reversal of Biden's original plan. Electoral consequences aside, progressive Democrats in Congress and activists clamored for the White House to offer a swift and substantial response to the court's decision. Republicans now seeking their party's 2024 presidential nomination lined up to applaud the ruling, with former Vice President Mike Pence saying he was “pleased that the court struck down the radical left’s effort to use the money of taxpayers who played by the rules and repaid their debts in order to cancel the debt of bankers and lawyers in New York, San Francisco, and Washington.” The White House’s efforts to block payments were an attempt to keep a Biden 2020 campaign promise to wipe out student loan debt that was especially popular with young voters and progressives. Both will be vital to Biden in next year’s presidential race — but may be less energized about supporting him after the high court’s decision.

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