The Supreme Court refused to allow a key part of President Biden’s student debt plan to move forward. Here’s what’s left of it, and who could still benefit.
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President Biden’s administration has canceled about $167 billion in loans for 4.75 million people, or roughly one in 10 federal loan holders.
President Biden’s latest effort to wipe out student loan debt for millions of Americans is in jeopardy.
The Supreme Court on Wednesday refused to allow a key component of the policy, known as the SAVE plan, to move forward after an emergency application by the Biden administration.
Until Republican-led states sued to block the plan over the summer, SAVE had been the main way for borrowers to apply for loan forgiveness. The program allowed people to make payments based on income and family size; some borrowers ended up having their remaining debt canceled altogether.
Other elements of Mr. Biden’s loan forgiveness plan remain in effect for now. And over the course of Mr. Biden’s presidency, his administration has canceled about $167 billion in loans for 4.75 million people, or roughly one in 10 federal loan holders.
But Wednesday’s decision leaves millions of Americans in limbo.
Here is a look at what the ruling means for borrowers and what happens next:
Who was eligible for SAVE?
Most people with federal undergraduate or graduate loans could apply for forgiveness under SAVE, which stands for Saving on a Valuable Education.
But the amount of relief it provided varied depending on factors such as income and family size. More than eight million people enrolled in the program during the roughly 10 months that it was available, and about 400,000 of them got some amount of debt canceled.
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Source: nytimes.com
