Supreme Court Blocks Biden's Student Loan Forgiveness Plan
Further Debt Relief Approved for Public Service Workers
Pell Grant Borrowers Lose Hope for Mass Debt Forgiveness
In a major setback for millions of student loan borrowers, the Supreme Court has temporarily blocked the one-time debt relief plan proposed by the Biden-Harris Administration. The plan aimed to provide up to $20,000 in forgiveness for Pell Grant borrowers and up to $10,000 for other federal student loan holders.
One-Time Forgiveness Denied
The Court's ruling halts the implementation of the one-time debt relief program, leaving borrowers in limbo. Despite the Administration's argument that the program is authorized by the Higher Education Relief Opportunities for Students Act of 2003, the Court found that the Administration overstepped its authority.
The ruling comes as a major blow to millions who were anxiously awaiting debt cancellation. Many borrowers were banking on the relief to alleviate their financial burden and improve their economic well-being.
Incremental Forgiveness for Some
While the one-time forgiveness plan is on hold, other student loan forgiveness programs are still in effect. The Public Service Loan Forgiveness (PSLF) Program has implemented regulatory changes effective July 1, 2023, which provide more flexibility for borrowers seeking forgiveness after working in public service.
Additionally, the Biden-Harris Administration has approved $49 billion in additional student loan debt relief for 736,000 borrowers and $58 billion in additional relief for 777,000 borrowers. This relief applies to borrowers who have already received PSLF forgiveness or who have made significant payments towards their student loans.
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