Defiant Joe Biden announces new measures to ease student loans after court setback

The US president voiced anger as he vowed to help ‘as many borrowers as possible’ after his ambitious student loan relief plan was struck down by the Supreme Court this week.

US President Joe Biden speaks about the US Supreme Court's decision overruling student debt forgiveness as Education Secretary Miguel Cardona looks on. Picture: AFP

US President Joe Biden said millions of Americans are “angry” after the Supreme Court brought down his student loan forgiveness program but on Saturday he announced new measures to ease the financial burden.

In emphatic rulings this week the court banned universities from giving minorities priority in admissions – so-called “affirmative action” – and then ruled that some business owners can refuse to serve gay couples on religious grounds.

And in its final decision for the 2022-2023 term, it struck down President Biden’s ambitious plan to cancel more than $US400 billion ($600 billion) of student debt to ease the financial stresses on lower and middle-class Americans.

“I know there are millions of Americans in this country who feel disappointed and discouraged or even a little bit angry,” Biden said. “I must admit I do too.”

Mr Biden announced measures to “provide student debt relief to as many borrowers as possible, as quickly as possible.” One measure is a 12-month pause on penalties for missing debt repayments on federal loans used by many students to finance their time in the notoriously expensive US higher education system.

This will “protect the most vulnerable borrowers,” the White House said. Another is a change to repayment plans by the Department of Education, with a cut in the percentage of borrower’s available income that must be paid each month toward loans from 10 to 5 per cent.

In addition, borrowers would see more of their income protected from having to be made available for repayments.

The court decision was not a surprise, given challenges to the presidential authority to issue sweeping loan forgiveness.

However, it was still a political setback for Mr Biden, who is seeking to increase state support for the poor.

The White House emphasised Mr Biden had already expanded the longstanding Pell Grant program to help finance the poorest college applicants and also sought to revamp existing loan forgiveness programs for groups like public service workers.

US Supreme Court steers society sharp right

One year after its ruling to erase abortion rights, the conservative-dominated US Supreme Court has underscored its determination to push society sharply to the right by scrapping long-established progressive policies.

Each Supreme Court decision has reflected the court’s six conservative justices under Chief Justice John Roberts flexing their biceps over its three liberals.

Republicans cheered them on as major victories were scored against flagship progressive ideologies – as was also the case in last year’s landmark overturning of abortion rights.

“I have never been prouder of Roberts Court. The Supreme Court is truly standing up for individual constitutional rights and limited government,” Republican Senator Lindsey Graham declared Friday.

But Mr Biden, a Democrat, was outraged by the rulings handed down by a court heavily influenced by three justices appointed by Donald Trump during his presidency.

He blasted the justices, saying: “This is not a normal court.” And he declared defiantly that he would repackage his student loan relief program, saying millions of Americans “feel disappointed and discouraged” at the court’s decision.

“The court misinterpreted the Constitution,” he said.