Student-loan borrowers across America are eagerly awaiting a crucial decision that could determine the fate of President Joe Biden’s proposed debt cancellation plan.
Student-loan borrowers are less than 24 hours away from finding out if they’ll get Biden’s debt cancellation. (Photo: iStock)
Student-Loan Borrowers Await Verdict
The Supreme Court is set to reveal its ruling on Friday, marking the end of its term before the summer recess.
According to Business Insider, this highly anticipated decision will address three remaining cases, with two of them specifically challenging Biden’s student-debt relief initiative.
The cases, Biden v. Nebraska and US Department of Education v. Brown aim to impede the implementation of the president’s plan to cancel up to $20,000 in student debt for federal borrowers.
The first case, Biden v. Nebraska, was initiated by six states led by Republican governors. These states argued that the debt cancellation plan would adversely affect their tax revenues, as well as the revenue of MOHELA, a student-loan company based in Missouri.
The second case, US Department of Education v. Brown, where two individuals who had taken out student loans filed a lawsuit. They argued that they were not eligible to receive the complete $20,000 relief amount proposed by the government.
Both cases seek to permanently block the much-awaited debt relief, which would impact millions of student-loan borrowers across the nation. Ultimately, the Supreme Court holds the power to determine the legality and future of this loan forgiveness initiative.
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Student-Loan Payments Resumes October
Irrespective of the court’s decision, the Department of Education is gearing up to recommence loan payments in October, with interest accruing once again in September after a pause of over three years.
The outcome of the ruling remains uncertain, but previous decisions made by the Supreme Court may provide some insight into how the justices are approaching student debt cases.
While past rulings do not definitively predict the outcome of the student-loan forgiveness decision, it is worth noting that the matter remains highly contentious.
Conversely, some Democratic lawmakers have expressed an unwavering commitment to ensuring relief for student-loan borrowers, pledging to take whatever measures necessary.
The White House also maintains confidence in the plan’s legality.
As the countdown to the Supreme Court’s decision draws to a close, student-loan borrowers and policymakers alike anxiously await the outcome that will have far-reaching implications for the future of student debt in America.
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