Student Loan Forgiveness Usa

Supreme Court Blocks Biden's Student Loan Forgiveness Plan

Millions of borrowers left in limbo as court halts $20,000 relief for Pell Grant recipients

The Supreme Court has blocked President Biden's one-time student loan forgiveness plan, which would have provided up to $20,000 in relief for borrowers who received Pell Grants. The court also rejected the administration's request to lift a stay on a separate program that would have discharged billions of dollars in loans for borrowers who have been repaying their loans for 20 to 25 years through income-driven repayment (IDR) plans.

The Biden administration today announced that it will automatically discharge $12 billion in loans for nearly 153,000 borrowers under a third program that is not affected by the court's rulings. This relief will provide full loan forgiveness to borrowers who have been approved for, but not yet received forgiveness under, the Public Service Loan Forgiveness (PSLF) program. The administration also announced that it will extend the pause on student loan payments through June 30, 2023.

Impact of the Supreme Court rulings

The Supreme Court's rulings are a major setback for the Biden administration's efforts to provide student loan relief to millions of borrowers. The one-time debt relief plan would have provided up to $20,000 in forgiveness for borrowers who received Pell Grants and up to $10,000 for other borrowers. The IDR loan forgiveness program would have discharged billions of dollars in loans for borrowers who have been making payments on their loans for at least 20 years.

The court's rulings leave millions of borrowers in limbo, unsure of when or if they will receive any student loan relief. The administration has said that it will continue to explore other options for providing relief, but it is unclear what those options might be.

What's next for student loan borrowers?

Student loan borrowers who are affected by the Supreme Court's rulings should contact their loan servicer to learn more about their options. Borrowers can also visit the Federal Student Aid website for more information about student loan relief programs.

The Supreme Court's rulings are a reminder that the student loan crisis is far from over. Millions of borrowers are still struggling to repay their loans, and many are at risk of default. The Biden administration and Congress need to do more to provide relief to these borrowers.