President Joe Biden’s debt forgiveness program is headed to the Supreme Court. There’s a lot on the line for borrowers. As many as 59% of borrowers say that, come June 2023, when the freeze on payments is expected to lift, they may not be able to afford to make payments again.
In August, Biden announced that tens of millions of borrowers would be eligible for up to $20,000 in student loan forgiveness. Those who earned less than $125,000 per year, or $250,000 per household, were eligible to receive $10,000 in cancellation, and those who met the income criteria and received a Pell Grant were eligible for up to $20,000 in cancellation.
The plan also included an extended pause on repayments that, as of this week, is active through June 30, 2023, or until the present litigation is resolved. A judge in Texas declared the rule illegal, and a federal appeals court issued a ruling effectively upholding the judgment of the lower court.
News@Northeastern sat down with Dan Urman, director of the Law and Public Policy Minor at Northeastern, who teaches courses on the Supreme Court, to get a sense of how the high court might approach such a high-stakes case. His comments have been edited for brevity and clarity.