Student Debt Relief Plan At Stake As Supreme Court Decides In Late June

The Student Debt Relief Plan is at stake as the Supreme Court will be giving its final decision on the case in the late June. Reportedly, oral arguments for the debt cancellation were already heard almost 3 weeks ago.

The U.S. President Joe Biden had intended to cancel up to $20,000 of student loans for millions of Americans with the Student Debt Relief Plan. However, this plan had faced an onslaught of legal challenges. The Congressional Budget Office stated that if every eligible student applies for the debt relief, the plan is estimated to cancel $400 billion in federal student loans. According to Nova, around 14 million Americans or a third of those with student loans will have their debts entirely wiped out with the debt relief plan.

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Supreme Court Decision on the Student Debt Relief Plan

Thomas Gokey, co-founder of the Debt Collective, stated that the result of the Supreme Court’s final decision in late June could have grave consequences on families. However, if the Supreme Court has a positive decision toward the debt relief plan, student borrowers will most likely not pay for any student loans again.

According to an article on Middlebury, the Biden administration will not resume the debt relief plan until 60 days after the final decision over the plan is resolved. Otherwise, the litigation may still pending by the end of August because 60 days seems to be not enough to cancel student loans if the plan survives. The Student Debt Relief Plan has reportedly already cancelled student loans for 16 million student borrowers. Hence, it is expected that it will not be difficult for them to disseminate this information to loan servicers.

READ ALSO: Student Debt Relief Plan: 53% Of Borrowers Need Loans Forgiven