In a recent report, the US credit card debt have now reached $986 billion. Another report had also provided that the credit card debt by the end of 2022 was $1.2 trillion. With the given figures, some percentage of the debts can be traced back to Student loan debts.
Student Loan Borrowers On Biden’s Forgiveness Plan
The Biden administration had announced a forgiveness plan for student loan borrowers. The plan aims to forgive $10,000 to $20,000 of student debts.
The announcement, which was acknowledged by the student borrowers had made some of then spent their money for other expenses instead.
20% of the student loan borrowers had mentioned they use the money to go on vacation, 37% percent mentioned paying other debts. Some had also said they had spent their budget on rents and home repairs. 27% had claimed they will not pay their student debts anymore, following the announcement from Biden Administration.
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Supreme Court Vs Student Loan Borrowers
The High Court however, did not agree with the Administration’s student loan forgiveness, denying the promised loan forgiveness plan.
According to the supreme court, the Administration don’t have the power to cancel large amount of Student loan without authorization from other branches of the Government like the Congress.
Around 40 million borrowers will still need to pay their student debts.
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