Media that empowers working people – that's how we build a More Perfect Union.

Don't Miss a Video!

Access our exclusive reporting and rapid response actions directly in your inbox, so you don’t miss a beat in the fight for working people nationwide.

Be a part of a community backing up independent journalism with action.

Ideas

Have a story to tell or idea to share?
Email [email protected]
© 2021 More Perfect Union Action

Together we can build power for working people.

We’re asking questions that really matter, and telling the stories of people who really need to be seen and heard.

You can support our work by donating today.

Amount

Make It Monthly

Don't Miss a Video!

Access our exclusive reporting and rapid response actions directly in your inbox, so you don’t miss a beat in the fight for working people nationwide.

Be a part of a community backing up independent journalism with action.

The Supreme Court Just Axed Student Debt Relief. What Happens Next?

The Biden administration can still cancel student debt.

YouTube Thumbnail

The Supreme Court just killed student debt relief, ruling 6-3 that Biden’s program, which would have canceled up to $20,000 per borrower, is not authorized by the HEROES Act.

More than 40 million people had qualified for debt forgiveness under Biden’s plan, and nearly 90% of the benefits for out-of-school borrowers would have gone to people earning less than $75,000.

These people have been stripped of relief not just by this conservative Court, but by a coalition of billionaires and corporate interests that funded this case behind the scenes.

But this isn’t the end of the student debt relief story

The Biden administration still has a tried-and-true legal authority to cancel student debt, one that Congress has authorized and that’s already been used repeatedly—including by the Trump administration—to wipe out federal student debt.

Here’s how it works: the Higher Education Act in 1965 gave the Secretary of Education the authority to make or back federal student loans. It also gave the Secretary broad and unrestricted power to cancel or write down that debt — to “enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand, however acquired, including any equity or any right of redemption.” Secretary Betsy DeVos even used it to cancel debt for certain borrowers.

President Biden could direct current Secretary Miguel Cardona to use that power to relieve millions of people of crushing debt. (If you’re wondering — they don’t need to stop at $20,000. They have the power to cancel ALL federal student loans if they wanted to.)

The Supreme Court struck down Biden’s initial attempt to cancel student loan debt, which was based on much more fragile legal standing. Biden had cited the HEROES Act of 2003, which gave the Education Department the power to “waive or modify” student loans for people affected by a “national emergency.” The Biden administration said the COVID pandemic was a national emergency that justified his student debt relief program and the Supreme Court disagreed.

The Higher Education Act doesn’t have the same limitation.

Biden’s new plan

President Joe Biden says he is launching a new student debt relief plan using his administration’s authority under the Higher Education Act. The Education Secretary started this new approach on June 30. The administration aims to forgive debt for “as many borrowers as possible, as quickly as possible.”

Biden also announced that, for the next twelve months, financially vulnerable borrowers will not be considered delinquent for missed payments, though interest will continue to accrue on their debt.

The Latest

YouTube Thumbnail
We Found The Happiest Workers In America
Read More
YouTube Thumbnail
What Billionaires Don’t Want You To Know About AI
Read More
YouTube Thumbnail
Who Is Bankrolling RFK Jr.’s Campaign?
Read More
YouTube Thumbnail
The Man Corporate America Is Most Afraid Of
Read More
YouTube Thumbnail
What Dollar General Doesn’t Want You To Know
Read More
YouTube Thumbnail
“I’m A Doctor: Corporate Greed Is Killing Your ER”
Read More
YouTube Thumbnail
What Happened to Boeing?
Read More
YouTube Thumbnail
Chicago’s Radical Solution to End Homelessness
Read More
YouTube Thumbnail
In This Town, Only The Rich Get Water
Read More
YouTube Thumbnail
The Evil Company Buying Subway (And The Rest Of Your Favorite Chains)
Read More
YouTube Thumbnail
Ban Airbnb? This Town Found a Solution to the Housing Crisis
Read More
YouTube Thumbnail
I Work For the King of Beers. I’m Paid Like a Peasant
Read More
YouTube Thumbnail
EV Factory Jobs Are Worse Than You Think
Read More
YouTube Thumbnail
Corruption is Driving Up Your Electricity Bill
Read More
YouTube Thumbnail
We Talked To Air Traffic Controllers. What We Heard Will Shock You.
Read More
YouTube Thumbnail
Why Day Care Costs More Than College
Read More
YouTube Thumbnail
Whistleblower Exposes Toxic Culture At Rivian
Read More
YouTube Thumbnail
Elizabeth Warren Warns of National Abortion Ban if GOP Wins in 2024
Read More
YouTube Thumbnail
What Liberals Get Wrong About Trump Voters
Read More
YouTube Thumbnail
Legal Weed Is Being Ruined By Corporate Greed
Read More