Democratic New York Rep. Alexandria Ocasio-Cortez criticized the Biden Administration’s new student loan debt plan in an interview on Sunday.
Ocasio-Cortez took issue with the Biden administration’s plan to not report borrowers to credit agencies and said that debt interest should be suspended in the 12-month “on ramp” period. (RELATED: Supreme Court Strikes Down Biden’s Student Loan Giveaway)
It is very important to note this SCOTUS ruling does NOT remove Biden’s ability to pursue student loan forgiveness.
The Biden Admin can use the HEA (Higher Ed Act) – our position from the start – to continue loan forgiveness before payments resume. They should do so ASAP. https://t.co/inV3yWsDwB
— Alexandria Ocasio-Cortez (@AOC) June 30, 2023
“I would like to see interest payments suspended during this time, especially during that 12-month ramp-up period,” Ocasio-Cortez said to CNN’s Dana Bash. “There are millions of people in this country that have student loan debt under… $10,000 or $20,000, as outlined in the plan.”
“People should not be incurring interest during this 12-month on-ramp period,” Ocasio-Cortez added. “So, I highly urge the administration to consider suspending those interest payments. Of course, we still believe in pursuing student loan cancellation and acting faster than that 12-month period wherever possible.”
Ocasio-Cortez encouraged Biden to use the Higher Education Act (HEA) to circumvent the Supreme Court’s ruling. The HEA gives the Secretary of Education the discretion to waive student loans “under certain circumstances,” according to CBS News.
“Myself, as well as other members of the Congressional Hispanic Caucus, met with the White House recently around this plan, as well as many other advocates in the space as well,” she said.
“And we truly believe that the president – Congress has given the president this authority. The Supreme Court is far overreaching their authority. And I believe, frankly, that we really need to be having conversations about judicial review as a check on the courts as well,” she added.
The Biden Administration’s plan to cancel $400 billion in student debt was overturned by the Supreme Court Friday, forcing the president to come up with a new strategy.
Biden presented a 12-month “on ramp” program, in which the Department of Education will not report borrowers to credit agencies. The Biden Administration hopes to prevent borrowers from defaulting or suffering a lowered credit score while they gear-up to resume repayments, the president said Friday.