The Biden administration is rolling out and attempting to expand student loan repayment options for borrowers. Democracy Forward President and CEO Skye Perryman sits down with Yahoo Finance Live to discuss the legal challenges to the Higher Education Act.

"This is a wall that has been in effect for some time. It provides clear authority for the Secretary of Education to waive or modify or compromise debt, which is what the president has announced the intent to do, and the secretary has announced the intent to do," Perryman explains. "There will be some regulations and regulatory process... that has to take place before there is immediate relief here."

Perryman outlines the legal timeline and regulatory timelines for when borrowers could see relief from the Higher Education Act.

Click here to watch more of Yahoo Finance's special coverage "Student Loans: Crisis or Crucial?"

Video Transcript

SEANA SMITH: After a three-year pause, a long-standing payment freeze is ending. Federal student loans started accruing interest on September 1. And payments are set to resume next month. Millions of students are on the hook to pay in June. The Supreme Court blocked President Biden's student debt cancellation plan, which would have canceled up to $20,000 in loans for borrowers for each borrower.

Here to talk about that and more, we want to bring in Skye Perryman, CEO and President of Democracy Forward. Skye, it's good to see you. So first, before we get into the litigation of all this, and maybe what we could see ahead here in the coming months, what do student borrowers need to know, because I think millions are a little bit confused, given the fact that we've had some conflicting rulings over the last couple of months. And then also, just with everything changes-- everything changing. What do they need to know?

SKYE PERRYMAN: The main thing student borrowers need to know is that President Biden and his administration is committed to taking action in order to relieve student debt. While the Supreme Court did strike down the first debt program, the President has announced a number of other programs, including one that is to take effect immediately, which fixes glitches in the system and could provide an on-ramp for student borrowers to begin paying again, as well as some relief based on earnings and family size. The President has also announced a plan B under the Higher Education Act, which will be moving through the regulatory process, and will hopefully be able to provide borrowers even more relief.

- Yeah. So let's talk about the Higher Education Act. This is an act that was signed by Lyndon B. Johnson, right? So this has been in place. But how is the White House utilizing this, and what does it ultimately mean for those who are shouldered with this debt?

SKYE PERRYMAN: So this is a law that has been in effect for some time. It provides clear authority for the Secretary of Education to waive, or modify, or compromise debt, which is what the President has announced the intent to do. And the Secretary has announced the intent to do. There will be some regulations and regulatory process that has to take place before there's immediate relief here. And that is happening pursuant to announcements that were made earlier this summer.

SEANA SMITH: Skye, could we see legal challenges to that? What does that look like?

SKYE PERRYMAN: Well, there-- these days, unfortunately, there are a number of groups that are intent on seeking to challenge student debt relief. But it's very clear that there is authority under the Higher Education Act. This is one of the bedrock laws of all higher education payment systems.

And so, we will obviously be watching that. There has already been one legal challenge utilizing with a different part of the plan that a federal judge has already dismissed. But I do think that there could potentially be challenges, even though this is a clearly lawful and really important for borrowers in order to get the relief that they need.

- So what does that ultimately mean for the timeline of relief? You're talking about students that have not had to pay on their student debt for years now because of the pandemic pause that was put in place. What are they ultimately looking at if, as you say, there is still a bit of a legal challenge or legal road ahead?

SKYE PERRYMAN: So the lawsuit that had been filed against the more immediate debt relief initiatives has already been dismissed for lack of standing. So that's very positive for borrowers. But unfortunately, because the Supreme Court did strike down the first student debt relief attempt, a lot of the broad relief will have to take place after a regulatory process. That said, the administration has already taken swift action to provide for some borrowers an on-ramp in order to begin payments again, as well as some immediate relief that could save families almost $1,000 approximately-- some families approximately $1,000 a month through fixing various regulatory issues with the plan.

So there's a variety of legal-- there's a variety of legal pathways here. And the main thing is some borrowers will be able to get relief soon. And then, there will likely be more relief on the way with the Higher Education Act.

- So I realize there's a regulatory process that still needs to play out. But when you compare it to the HEROES Act, and you're talking about the path forward with the Higher Education Act, how does that differ in the scope that the scale of the relief that's available?

SKYE PERRYMAN: A lot of the scale will be determined during the regulatory process. But the Higher Education Act does provide a pretty comprehensive relief. It's just slower than the HEROES Act was. The HEROES Act was an act that is clear, that the President can use in emergency situations.

Unfortunately, the Supreme Court struck down that debt relief under there. And so now, this is going to be a bit of a lengthy process. But the important thing is the administration has already announced a variety of other more immediate relief through the regulatory-- a variety of other more immediate relief that may not be as large as the Higher Education Act, which will take some time, but is to go into effect in order to provide that on-ramp for borrowers.

SEANA SMITH: Skye Perryman, CEO and President of Democracy Forward. Thanks so much.