President Joe Biden said Friday he is formulating a new plan regarding student loan relief after the Supreme Court struck down his original program to eradicate $430 billion in student debt.

"This new path is legally sound," said Biden, who was joined at the White House podium by Secretary of Education Miguel Cardona. "It's going to take longer. And in my view, it's the best path that remains to student debt relief to as many borrowers as possible as quickly as possible."

Biden laid out his new plan to help alleviate financial stress as loan payments restart in October after a three-year pause. The administration will create a temporary 12-month "on-ramp repayment program" that will remove the threat of default for borrowers who are unable to pay their bills, Biden said.

In a 6-3 decision earlier Friday, the Supreme Court said the Biden administration overstepped executive powers when it moved to waive $430 billion in debt for millions of eligible Americans. Over 40 million Americans would have qualified for the program.

Federal student loan debt for up to $10,000 would have been forgiven for borrowers making less than $125,000 a year. Borrowers who also qualified for Pell grants to pay for college could have had up to $20,000 canceled.

"The money was literally about to go out the door," Biden said. "And then Republican-elected officials and special interests stepped in and said no, literally snatching from the hands of millions of Americans thousands of dollars in student debt relief that was about to change their lives."

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