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A shipment of sinks. the estimated value more than $2.5 million. this morning the biden administration is pursuing new action to ease student debt after the supreme court struck down the president s student loan forgiveness program. the decision blocks millions of bo borrowers receiving up to $20,000 in federal debt relief months before payments are restart in october. after a three-year payment freeze, a lot of people are not prepared to add another bill into the budget. here is some recommendations on handling those student loans. the president and founder of the institute of student loan advisors. so let s start here with what the president announced on friday. first, good morning to you. thank you for being with us. i want to start with this 12-month on-ramp program and as described by the white house, financially vulnerable borrowers who miss monthly payments are not considered delink wink, ....
It s going to be an era of the supreme court really being run by the american political right. friends, thank you very much. really great to get all of your perspectives. i want to turn now to former secretary of education arne duncan. secretary duncan, thanks for being here. as you heard us talking, president biden today explained that he has a new plan to help students who now feel left in the lurch. here s what he said about that. creating a temporary 12-month, what we re calling on-ramp repayment program. now, this is not the same as the student loan pause. if you miss payments this on-ramp temporarily removes the threat of default or having your credit harmed. okay, so help us understand how this will work. well, it s not easy, and president biden is a fighter. he ll leave no stone unturned and look at his authority under ....
Says that law violates the first amendment. the court also rejected president biden s plan to forgive hundreds of billions of dollars in student loans. under the biden administration s plan, 43 million american borrowers would have been eligible for student loan forgiveness. 26 million had already applied. they each would have had up to $20,000 worth of loans forgiven. the plan would cost over $400 billion. the court ruled that the president doesn t have the authority to simply sign off on such funds. later in the day biden announced new actions to provide debt relief, including a i2 month on ramp payment plan which runs from october 2023 to the end of september 2024. the white house says the plan will protect the most vulnerable borrowers from the worst consequences of missed payments. borrowers who miss monthly payments during this period will not be considered delinquent, reported to credit bureaus, placed in default, or referred to debt collection agencies for 12 months. biden cond ....
Routes, which he was calling an on-ramp for payments, but essentially trying to pursue what s going to be a rule making process. and officials acknowledged yet this is going to take time. what do people who have to start paying in october take away from that? do they wait to see if something comes to fruition, or do they begin making their payments on october 1? i think the message to borrowers should be, do not count on a plan b here. it looks like the administration is going to try to pursue some other regulatory means for wiping out or at least reducing people s debt beyond the kinds of expansion of income-driven repayment program, for example, that they have already put in place. but if that had been the solution to this problem that had the firmest legal footing, i think it would have been their plan a. so, it may very well work. i don t know. i m not a lawyer. ....
Of they didn t want to get in the way of their own court case. they didn t want to undermine the argument that the u.s. government, the biden administration, was making to try to pursue student debt forgiveness. and also they were worried about sending conflicting messages to the general public to borrowers. but the end result is that there are a lot of people i think are going to get hit with a surprise bill because they haven t been following this quite as closely as those of us in the media and the administration have been doing. when president biden comes out today, he says, i m not done fighting for this. he s going to pursue these other routes, which he was calling an on-ramp for payments, but essentially trying to pursue what s going to be a rule making process. and officials acknowledged yet this is going to take time. what do people who have to start paying in october take away from that? do they wait to see if something comes to fruition, or do they begin making their payme ....