Biden's Student Loan Forgiveness Program Awaits Supreme Court Decision
President Biden's federal student loan forgiveness program, which would provide up to $20,000 in debt relief to millions of borrowers, is pending a Supreme Court decision expected by late June or early July 2023. The program faced legal challenges from Republican-led states and individual borrowers who argue the administration exceeded its authority. The outcome will determine whether approximately 26 million applicants receive the promised debt relief or whether payments resume without forgiveness.
The Biden administration launched its student loan forgiveness program in October 2022, allowing borrowers to apply for up to $20,000 in federal debt relief, with eligible Pell Grant recipients eligible for up to $20,000. However, a federal judge struck down the program in November 2022, halting new applications after 26 million people had already applied. The Supreme Court heard arguments on February 28 regarding two separate legal challenges: one from six Republican-led states arguing the program violates separation of powers and the Administrative Procedure Act, and another from individual borrowers claiming they were denied comment opportunities. The administration argues Congress granted the Secretary of Education expansive authority to address hardship from national emergencies like COVID-19. Regardless of the Supreme Court's ruling, student loan interest will resume on September 1 and payments will be due starting in October, ending the pandemic-related payment pause that has been extended multiple times.
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Everything you need to know about Biden's student loan forgiveness program
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