Introduction
Student loan forgiveness is a hotly debated topic in the United States, and the upcoming Supreme Court hearing on the issue has added fuel to the fire. The Biden administration’s extension of the student loan pause is set to end 60 days after either June 30 or the date that the Supreme Court rules on the student loan forgiveness. In this article, we will discuss five key things to know about the upcoming Supreme Court hearing on student loan forgiveness, including what it means for borrowers, potential outcomes, and what actions borrowers can take in the meantime.
Background
The issue of student loan forgiveness has been a contentious topic in the United States for several years. With the average student loan debt hovering around $30,000, many borrowers have been struggling to repay their loans, leading to calls for the government to forgive some or all of the debt. While some politicians have advocated for widespread loan forgiveness, others argue that it would be unfair to those who have already repaid their loans or who did not attend college.
Five Things to Know about the Upcoming Supreme Court Hearing
- The Supreme Court will be hearing a case on the constitutionality of student loan forgiveness: The case in question, United States v. Texas, centers around whether the Secretary of Education has the authority to provide blanket student loan forgiveness. The case argues that the Secretary’s authority is limited by the Higher Education Act, which does not explicitly grant such authority.
- The case is a result of a lawsuit filed by several states: Texas, along with several other states, filed a lawsuit against the federal government arguing that the student loan forgiveness program is unconstitutional. The case was originally dismissed by a lower court but was later appealed to the Supreme Court.
- The outcome of the case could have far-reaching implications for borrowers: If the Supreme Court rules in favor of the states, it could invalidate the student loan forgiveness program, leaving borrowers on the hook for their debt. However, if the court upholds the program, it could open the door for widespread loan forgiveness.
- Borrowers should continue to make payments in the meantime: While the case is pending, borrowers should continue to make their loan payments as usual. Even if the Supreme Court upholds the program, it is not clear how long it will take for loan forgiveness to be implemented, and in the meantime, missed payments could result in damage to borrowers’ credit scores.
- Borrowers can take action by contacting their representatives: Regardless of the outcome of the case, borrowers can take action by contacting their representatives and advocating for policies that would make student loan repayment more manageable. This could include measures such as expanding income-driven repayment plans, capping interest rates on student loans, or increasing funding for grant programs.
Conclusion
The upcoming Supreme Court hearing on student loan forgiveness is a significant event that could have far-reaching implications for borrowers. While it is not clear how the court will rule, borrowers can take action to protect themselves in the meantime by continuing to make their loan payments and advocating for policies that would make student loan repayment more manageable. By staying informed and taking action, borrowers can ensure that their voices are heard on this important issue.
