Biden is “actively plotting” ways to forgive student loans if the Supreme Court strikes it down

The Supreme Court is about to make a decision any day on President Joe Biden’s proposed student loan forgiveness plan — and progressives are trying to find a way to wipe that debt off anyway.

Meanwhile, the group that filed one of the lawsuits that brought the resident’s plan to the Supreme Court says they will sue any workarounds the Biden administration tries to break.

Alfredo Ortiz, president and CEO of Job Creators Network, told DailyMail.com that the Department of Education (DOE) is actively working on workarounds to still get at least $10,000 off the debt of most borrowers with outstanding student loans.

The group declined to speculate on what those workarounds might be — especially before the Supreme Court rules by a conservative 6-to-3 vote on the fate of one of Biden’s cornerstone proposals.

“If they implement workarounds, we will sue the workaround,” Ortiz said in a conversation with DailyMail.com about the plan, which the Congressional Budget Office estimates would cost $400 billion.

The debt ceiling agreement, signed by Biden this month, made it legal for student loan payments to resume at the end of August. Now progressives are looking for a way to ensure that there is a widespread forgiveness plan

JCN sued the Biden administration for instructing the DOE to enact a plan to forgive between $10,000 and $20,000 in student loans after more than three years of deferral of repayments — using the HEROs Act that has been passed. prepared for first responders of the 9/11 terrorist attacks.

The group argued that the DOE failed to follow rule-making procedure in allowing Americans a public comment period to speak out on the proposed rule.

Ortiz also lamented that student loan forgiveness with the HEROs Act is beyond the scope of the bill’s intent.

He attended oral arguments before the Supreme Court earlier this year.

Student loans have quickly become one of the biggest problems for millennial and Gen Z voters, as the two demographics with the highest student loan burdens have trillions of outstanding debts to the federal government.

JCN CEO and president Alfredo Ortiz told DailyMail.com that the Ministry of Education is looking for other ways to implement forgiveness and vowed: ‘If they implement workarounds, we will sue the workaround’

But most Republicans say those who took out loans should pay them back without a bailout.

Student loans have been at a standstill for years during the pandemic — and many say they’re not sure how they’ll account for the payments once they resume.

Cheyenne Hunt, a progressive House candidate in California’s 45th congressional district, said the US needs younger leaders who better understand student loans to effectively address the problem.

“We need to elect young representatives who understand the true toll these predatory borrowings have taken on the American Dream,” Hunt told DailyMail.com. “We have granted the loan service industry special privileges and protections that reinforce its abusive stranglehold on our economic opportunities.”

Ortiz agrees that the student loan industry is “predatory,” saying the way to tackle the problem head-on is to get to the root of the problem rather than pushing for forgiveness or pausing. outstanding debts.

The debt ceiling agreement signed by Biden earlier this month makes it legal for student loan repayments to resume at the end of August, after a three-and-a-half year delay. Because of this, several borrowers are concerned about resuming a bill they haven’t paid in years.

In March 2020, then-President Donald Trump delayed student loan payments due to the outbreak of the coronavirus pandemic. Since then, Trump and Biden have continued to sign legislation extending the break.

Biden then proposed last summer that payments be resumed in conjunction with $10,000 in student loan forgiveness for individuals earning less than $125,000 or couples with a combined income of less than $250,000.

Those with Pell Grants would qualify for $20,000 in forgiveness.

But the proposal was immediately challenged by several sides, including by Ortiz’s organization.

Ortiz noted that the federal government is losing $5 billion a month from not collecting outstanding student loans — and said resuming would help the economy in general.

However, he also said that the “government should generally pull out of the student loan business” and leave it to the private sector.

The Supreme Court by a conservative majority of 6 to 3 will rule this month on whether Biden lawfully implemented his student loan forgiveness plan