Is Student Loan Debt Relief Dead?

By Briana Harper

High hopes for President Joe Biden’s Student Loan Relief Program fell flat last month following the Supreme Court’s decision to strike down the promise of loan forgiveness. In a 6-3 vote, the court ruled the Department of Education exceeded its authority to clear more than $400 billion in student loan debt.

The three justices who dissented included Ketanji Brown Jackson, the first and only Black woman serving on the Supreme Court. Jackson and the others in opposition argue the court is overstepping its authority. The discussion surrounding student loan debt relief has been highly divisive along party lines from the very beginning. Overall, Democrats criticized the court’s most recent decision while Republicans rejoiced at the ruling.

The proposal had the possibility of clearing $10,000 of student loan debt for borrowers earning less than $125,000 a year. The loan forgiveness amount would have doubled to $20,000 for Pell Grant recipients.

“It’s frustrating to see them bail out companies that make a lot of money and then ... fight us so hard on trying to get a little bit of relief. So that’s definitely frustrating”

Emily Weir/ABC News

Borrowers expressed shock and dismay at the Court decision. Now they contemplate things like second jobs and other avenues to address their own personal debt crisis. Still others, like Emily Weir say they have to readjust their goals and expectations of home ownership and even family planning.

Now the question that more than forty-three million American borrowers are left asking is—what’s next?

President Biden shares “the fight is not over.” The loan forgiveness pledge was one of

Biden’s top priorities during his 2022 presidential campaign. He continues to stand by how much the relief could positively impact middle-class Americans and says he is committed to finding other ways to deliver this much needed relief.

Student loan payments will restart in October—the first time in three years since the pause began during the pandemic. Interest in federal student loans will also begin accruing starting in September.

In July the Biden adminstration launched the “Saving on a Valubale Education” or SAVE Plan. The plan is expected to cut the student loan payment of many borrowers in half and for others leave them with no monthly bill. The beta application for the plan is now available to borrowers at www.studentaid. gov.