Supreme Court Could Issue Its Decision on Student Loan Forgiveness Plan Later Today

This week, all attention is on the US Supreme Court, which is expected to release a decision on the President Joe Biden’s plan to forgive student loans for more than 40 million borrowers.

Student loan borrowers are waiting to hear from the court even later today about the long-awaited decision on loans, Erudera.com reports.

Nonetheless, the ruling from the court is still pending, and experts say that it will finally be released on Thursday, or no later than Friday morning since the justices must decide before their term ends for summer recess.

The court recently issued four decisions, but none were on the Biden's plan for student loan forgiveness. Under the plan, federal student loan borrowers could see up to $10,000 or $20,000 in debt relief.

Christina Winton, a public servant and Arizona Chapter President at Student Lon Justice, one of the largest groups in the US fighting for student loan justice, said that the loan has made it difficult for her to support herself and her family, including her aging parents for whom she has to take care alone.

With less income, she can barely afford both and is not able to sustain payments on a debt that she says should have already been paid off.

“Now, with payments restarting, costs of living rising, and still in the status of being a solo parent, no support, and taking care of aging parents, I will not be able to make any more payments forwards this debt that should have already a been canceled,” Winton told Erudera.

As a presidential candidate, Biden promised to reduce student loan balances for tens of millions of borrowers. He announced his loan plan in August last year, but it was put on hold due to several legal challenges filed by Republicans and conservative groups.

Republicans say the student loan forgiveness plan is unlawful, criticizing the President for overstepping his powers in canceling student loans. Biden administration argues the debt-relief program is legal.

On September 29, 2022, six Republican states jointly filed a lawsuit to block Biden’s student loan forgiveness plan. Republican-led states that sued Biden’s administration are:

• Nebraska
• Missouri
• Iowa
• South Carolina
• Kansas
• Arkansas

Regardless if the court decides in favor or against Biden’s plan, student loan payments will start in October and the interest accrual will resume in September, the Department of Education has confirmed.

“The emergency period is over, and we’re preparing our borrowers to restart,” US Education Secretary Miguel Cardona said at a Senate hearing.

The pause on federal student loan payments was extended eight times by both the Biden and Trump administrations.

>> Future Student Loan Forgiveness Initiatives Are Highly Unlikely, Says Expert

Image source: Bill Mason | Unsplash