Biden offers alternative student debt plan to remove instant default threat

President Joe Biden is offering an alternative student debt plan designed to ease borrowers' threat of default if they fall behind on their payments, after the Supreme Court struck down his original initiative.

Biden on Friday blamed Republican opposition for triggering the Supreme Court's ruling and slammed the decision as wrong.

The president said he will work under the authority of the Higher Education Act to begin a new programme that would begin loan repayment but remove the immediate threat of default.

He said the plan would take longer but provide relief to millions of borrowers.

The president earlier had insisted that this fight is not over after the Supreme Court struck down his USD 400 billion student loan forgiveness plan. He blamed Republicans' opposition, aiming to direct the ire of millions of borrowers towards them rather than his own party in next year's elections.