President Biden’s student loan forgiveness program faced multiple legal challenges, so it may be hard for borrowers to know the latest updates.
Here are some key points about the one-time plan.
It’s on hold while the supreme court decides
Two appeals (from the 5th Circuit Court of Appeals and the 8th Circuit Court of Appeals) are heading to the US Supreme Court.
Oral arguments about the Biden student loan forgiveness application are set for February 2023.
Hence, a decision would be issued anytime between then and next summer.
President Biden extended the student loan pause to 2023
As a result of the ongoing block over the $20k student loan forgiveness plan, the student loan pause has been extended.
This action has stopped payments and interest on federal student loans into 2023.
Other student loan forgiveness programs are suspended, too, including Income Driven Repayment (IDR) and Public Service Loan Forgiveness (PSLF).
Other student loan relief programs remain intact
Fear not, other important student loan forgiveness programs remain available, including:
- The IDR Account Adjustment, provides credit toward student loans under PSLF and IDR.
- Automatic loan cancellation for former students of ITT Technical Institutes, Corinthian Colleges, and other predatory institutes.
So, when will student loan forgiveness be applied?
It could be around 60 days after June 30, 2023.