Student Debt Relief Plan: 53% of Borrowers Need Loans Forgiven

A study revealed that 53% of the borrowers depend on the Student Debt Relief Plan for their student loans to be forgiven. At the end of this month, these borrowers’ fate is at a critical stage as the Supreme Court will hear arguments about the plan.

A study conducted by Qualtrics under the Credit Karma revealed that 53% of the borrowers who have unpaid federal student loans depend on the Student Debt Relief Plan to have their loans be forgiven. Millions of student loan borrowers await the decision as the Supreme Court will hear arguments about U.S. President Joe Biden’s Student Debt Relief Plan by the end of this month.

According to Bizouati-Kennedy, apart from the student loans, the borrowers also have to deal with the rising inflation as well as the rising interest rates. Reportedly in January, the Consumer Price Index (CPI) was reduced by just 0.1% to 6.4% on a yearly basis, which was higher than expected.

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Opposition Against the Student Debt Relief Plan

An article on NerdWallet states that the Student Debt Relief Plan faced several lawsuits and injections. This made the Biden administration announce that the debt relief plan’s postponement which was set to end on December 31, 2022 will be extended to the end of June this year. This is because the Supreme Court will still be placing the plan under review. Nonetheless, payments are expected to resume 60 days thereafter.

Data from the White House revealed that around 26.3 million student loan borrowers have applied or were considered eligible for the Student Debt Relief Plan. In addition, there are 16.5 million borrowers whose applications have been fully approved and sent to loan servicers for issuance.

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