The Supreme Court of the United States is set to make a crucial ruling on the proposed forgiveness of up to $20,000 in federal student loans, impacting over 44 million Americans.
While the exact date remains uncertain, the decision is anticipated before the end of June, in line with the Court’s usual timeline for major rulings. The outcome of this decision could potentially erase millions in debt, with about 44 million Americans standing to benefit if the loan forgiveness plan proposed by President Biden is approved.
The loan repayment pause, first implemented by former President Trump in early 2020, is also under review. The Biden administration stated that repayments would resume either 60 days after the Supreme Court’s decision or 60 days post-June 30, depending on which happens first.
Despite calls for an extension, it remains unclear whether President Biden would further extend the pause. Education Secretary Miguel Cardona confirmed that preparations are underway for loan payments to resume this year. If the Supreme Court ruling is against the proposed forgiveness, the administration’s alternative strategy remains unclear, although experts expect other student loan debt measures to be highlighted.
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