- The Biden administration has granted student loan forgiveness to over 16 million individuals, however, the actual implementation of this relief is contingent on a decision by the Supreme Court.
- The Supreme Court will hear oral arguments regarding this policy on February 28th.
The Biden administration announced on Friday that the U.S. Department of Education has completed the approval process for over 16 million individuals seeking federal student loan forgiveness. The approved applications have been forwarded to loan servicers, however, the implementation of this debt relief program is currently on hold pending a decision by the U.S. Supreme Court.
The administration provided a breakdown of the number of borrowers who have applied and been approved for the program, by state. In August, President Biden proposed a plan to forgive at least $10,000, and up to $20,000, in federal student loan debt for eligible borrowers.
However, the plan faced legal challenges from Republicans and conservative groups, resulting in the closure of the student loan forgiveness portal in November, after a federal judge in Texas struck down the plan. Despite this setback, more than 26 million individuals had applied for relief or were deemed automatically eligible during the application period.
According to a White House fact sheet, “these borrowers could be benefitting from the Administration’s program right now were it not for lawsuits brought by elected officials and special interests.” The Supreme Court will hear oral arguments regarding the president’s plan on February 28th.