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In the eagerly awaited decision on President Joe Biden's plan to cancel student loan debt, the Supreme Court is expected to make a ruling before the end of June, providing much-anticipated clarity for millions of anxious borrowers.
The court heard oral arguments for two legal challenges to the debt forgiveness plan at the end of February and is likely to issue its decision by early July, just before the start of the summer recess.
One of the key questions before the justices is whether the president has the authority to implement such a far-reaching policy. Biden's plan, estimated to cost approximately $400 billion, seeks to forgive up to $20,000 in student debt for tens of millions of borrowers.
Critics argue that the istration is misusing the Heroes Act of 2003, which grants the U.S. Secretary of Education the power to make changes to student loans during national emergencies. The law was enacted after the September 11 terrorist attacks and opponents assert that it was not intended to be a broad-based debt relief provision that the istration can invoke at will.
Supreme Court's decision on Student Loan Forgiveness could harshly impact lives of many
The outcome of the Supreme Court's decision carries significant implications for borrowers, with many individuals facing dire financial circumstances. For some, the choice between paying student loans or meeting basic needs such as groceries, rent, and medical bills has become a matter of survival. If every eligible borrower were to apply for relief, the Congressional Budget Office estimates that Biden's plan could wipe out $400 billion in federal student debt, reducing the nation's outstanding education debt balance from $1.7 trillion to $1.3 trillion.
Under the president's program, approximately 14 million people, or a third of federal student loan holders, would have their balances completely forgiven. Additionally, around 37 million people would be eligible for partial loan cancellation, with amounts ranging up to $20,000 for those who received a Pell Grant during college and up to $10,000 for others.
As borrowers await the Supreme Court's decision, the spotlight remains on the potential impact that the ruling could have on the financial well-being of countless individuals and families across the nation.