![]() Making matters worse, many older borrowers will have a new loan servicing company – not to mention they may have forgotten their online portal passwords some may not have even checked their balances in months, if not years. Tens of millions of borrowers who had hoped to have some or all of their federal student loans erased will soon be asked to resume repayment. Borrowers will soon have to start repaying their loans again – and it could get ugly While Republican opposition was fierce, a majority of the public (55%) supported forgiving up to $10,000 per person in federal student loan debt, according to a June 2022 NPR/Ipsos poll. ![]() And I think what he has done is totally illegal." "What the president has done is take on the role of Congress by deciding through a rule to appropriate money from the taxpayers to people who willingly took on a debt. Virginia Foxx of North Carolina, the Republican chairwoman of the House education committee. "I'm very pleased that the Supreme Court is following the Constitution," says Rep. The Congressional Budget Office estimated the debt relief plan would cost about $400 billion over the next 30 years. Many Republicans had fiercely opposed Biden's plan, calling it an abuse of executive power and an enormously expensive handout to college-educated Americans. The NAACP also pushed hard for relief.Įducation Joe Biden's student loan forgiveness plan will cost $400 billion, budget office says The Student Borrower Protection Center is one of a handful of advocacy groups that have been vocal in their support of debt relief, and have put pressure on President Biden to be as generous as possible. "It's really tragic that student loan borrowers have been stuck in this position as political pawns," says Persis Yu of the Student Borrower Protection Center, "and now are victims to a politicized court that is willing to jeopardize their financial security for political gain." You know, I'm not eating a goose for dinner every night." "I haven't been having crazy parties for the last three years because I'm not paying back my student loans. "There is this mental weight that you carry with a student loan, knowing that as far as you can go into your foreseeable future," says Panton, who became a father late last year and says the money he's saved not paying down his loans over the pause has helped support his young family. ![]() Panton took out federal student loans to pay his way through college and dutifully made monthly payments from late 2003 until March 2020, when the pandemic payment pause began. "What else can I do? Go back to paying the student loan that I have been paying for 20-plus years." ![]() "I feel like it's back to business as usual," says borrower Kurt Panton, with a long sigh. Whatever you think of Biden's proposal, in this moment, the collective disappointment and perhaps disillusionment of so many Americans is palpable and worth acknowledging. While much can be said about the court's decision – and no doubt will be in the coming days – here are five things to know about what it will and won't mean for borrowers and the country.Įducation A look inside the legal battle to stop Biden's student loan relief But the proposal was also beset by a host of Republican legal challenges that ultimately led to the Supreme Court stepping in. That August announcement came after months of speculation that the president would act, and its warm reception by younger voters may have contributed to Democrats' better-than-expected showing in the midterm elections. government would cancel up to $20,000 of debt for anyone who had received a Pell Grant to attend college, and up to $10,000 for the vast majority of remaining borrowers. The high court's decision comes after a tumultuous year for federal student loan borrowers, who were told in August by President Biden that the U.S. The "modifications" by the Department of Education, Roberts wrote, "created a novel and fundamentally different loan forgiveness program" that "expanded forgiveness to nearly every borrower in the country." In a decision written by Chief Justice John Roberts, the court ruled in favor of Missouri and five other states, who had argued that the Administration had overstepped its authority to forgive some student loans.
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