Even though the U.S. Supreme Court decided to strike down the student loan forgiveness plan put forth by the Biden Administration, the White House and student loan abolitionists say debt cancellation is still possible.

After the high court ruled that Biden lacked the authority to wipe out debts under the HEROES Act, the president is now shifting focus to the Higher Education Act of 1965 to eliminate debt for more than 43 million borrowers.

“This new path is legally sound,” Biden said on the day of the SCOTUS decision. “It’s going to take longer, and in my view is the best path that remains in providing for as many borrowers possible. But I’m directing my team to move as quickly as possible on the law.”

What is the Higher Education Act?

Not only does the Higher Education Act have the power to cancel student loan debt without the existence of an emergency, like the HEROES ACT, but it also has a compromise-and-settlement authority, that allows the Secretary of Education to “enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand” related to federal student debt.

“Debt cancellation is totally legal,” Debt Collective, the nation’s first debtor’s union co-founder Astra Taylor told Bloomberg earlier this week. 

Read more: Student loan debt payments to restart soon. Here’s how to get ready

“It happens all the time and the president has other legal authorities. The Higher Education Act should be used immediately and rapidly to deliver on this essential commitment.”

When first signed into law by President Lyndon B. Johnson in 1965, the Higher Education Act was intended to provide financial assistance to students pursuing higher education and with this act the Debt Collective has crafted an executive order to fully cancel federal student loan debt.

“The federal government doesn’t budget like a household. If they issue a debt, they can choose not to collect on that debt.”

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