Defying SCOTUS, White House Decrees “Student Loan Forgiveness” in Election Year Ploy

The Biden Administration announced Monday that it is pushing forward with a plan to cancel an additional tranche of student loan debt, despite a Supreme Court ruling striking down a prior loan forgiveness plan.

The controversial executive action comes amid plummeting poll numbers among young, black, and Hispanic voters, groups which have historically tended to vote for Democratic presidential candidates.

[RELATED: SCOTUS Torches Biden’s Student Loan Forgiveness Promise…]

The new plan would bring the number of Americans receiving some amount of debt relief or forgiveness for student loans up to 37 million.

While the White House and its allies have described the plan as debt “forgiveness” or debt “cancellation,” the full amount of the debt will in fact be transferred to U.S. taxpayers via an expansion of the already ballooning national debt.

“If you paid undergraduate loans for more than 20 years, or graduate loans for more than 25 years, those loans will be completely forgiven, regardless of your income, and even if you did not graduate, and forgiveness will be automatic for the vast majority of the 25 million people that we believe will benefit from this approach,” said Vice President Kamala Harris.

President Joe Biden bragged that his administration has now approved $146 billion in debt forgiveness.

The debt will now accrue interest along with the rest of the national debt, increasing the cost ultimately borne by current and future taxpayers.

Under the new plan, anyone who now owes more than the original amount of their loan will be eligible for “forgiveness” of up to $20,000 of their excess interest.

The Biden Administration believes that this will affect over 25 million borrowers, and that many of the eligible low and middle income borrowers would have their entire excess interest erased from their personal balance sheets.

For the purposes of debt forgiveness, the Biden Administration considers any single person earning under $120,000 and any married couple earning under $240,000 as low or middle income.

The majority of those eligible under the new rules will have their debt forgiven automatically, without any need to apply for the relief.

The new plan will also automatically cancel debt from anyone eligible for the Saving on a Valuable Education (SAVE) Plan, even those eligible debtors who chose not to sign up.

[RELATED: Vote Buying: Biden Circumvents SCOTUS (Again) to Saddle U.S. Taxpayers with Student Loan Debt…]

In order to qualify for the SAVE plan, a debtor must have had their loans for at least ten years, and must have been less than $12,000 in debt.

President Biden also claimed that his new plan will benefit black and Hispanic borrowers in particular, because they are more likely to struggle with loan payments than white borrowers.

This comes as Biden attempts to maintain faltering electoral support from black and Hispanic voters.

Biden touted his plan as a benefit to the economy, which could provide people the opportunity to become homeowners.

“By freeing millions from the crushing burden of student debt, folks can finally get on with their lives – starting families and buying homes,” said Biden on X.

The president did not address the potential tax impact of the debt forgiveness on everyday taxpayers who either never took out loans, or have already paid them off in full.

The new announcement follows a February decision to cancel $1.2 billion in debt for those enrolled in the SAVE plan six months ahead of schedule.