Student Loan Forgiveness in Doubt as U.S. Supreme Court Considers Challenge
More than 40 million Americans, mostly people under 35 years of age, have student loan debt. COVID-19 has exacerbated the financial challenges these individuals face. While Congress did provide relief, more needs to be done including extending the moratorium on payments, expanding the program to private loans, and providing targeted monetary relief in cases of economic hardship. Providing some form of student loan relief for Americans saddled with this debt has been a legislative priority of the New York State Bar Association.
President Biden came into office almost two years ago on a campaign promise to address student loan debt. He extended the moratorium on federal student loan payments that Congress had instituted as part of an early COVID aid package. But many in Congress, as well as civic groups called for the president to go further and cancel all or part of student loan debt.
In August, President Biden announced many federal student loan borrowers would be eligible for some forgiveness. The administration launched a beta site portal and was expected to begin processing forgiveness as early as this weekend. However, last minute court challenges, including one that went all the way to the Supreme Court, have put this plan in doubt. As of the writing of this update, the administration is moving ahead with the forgiveness plan and applications can be found here: https://studentaid.gov/debt-relief/application. Check back here for updates as court cases continue.