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White House Plans End-Around If Student Loan Giveaway Is Struck Down

WASHINGTON, DC - APRIL 27: Sen. Bernie Sanders (I-VT) speaks at a Student Loan Forgiveness rally on Pennsylvania Avenue and 17th street near the White House on April 27, 2022 in Washington, DC. Student loan activists including college students held the rally to celebrate U.S. President Joe Biden's extension of the pause on student loans and also urge him to sign an executive order that would fully cancel all student debt. (Photo by Anna Moneymaker/Getty Images)
  • The Biden administration is quietly preparing for the possibility that the Supreme Court will strike down its controversial student loan forgiveness plan later in June, according to a Wall Street Journal report.
  • Behind the scenes, administration officials are exploring various legal and communications strategies to pursue in the event that the Supreme Court eventually overturns the signature Biden policy, according to the report.
  • The federal student debt cancellation plan allows for millions of individual borrowers to cancel up to $20,000 in federal student loan debt as currently constructed. The court’s majority signaled its critical attitude of the sweeping policy action in oral arguments in February 2023, according to the report.
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