Student loan borrowers watch the clock as the U.S. Supreme Court rules on whether to uphold President Joe Biden’s most notable promise – to forgive billions of dollars in college loan debt.
The ruling, expected as early as this week, affects roughly 40 million people nationally, with borrowers getting up to $20,000 in debt forgiven if the plan is upheld. Of that 40 million, there are a total of 1.4 million student loan borrowers in Michigan, with a collective debt of roughly $51 billion.
The progressive policy initiative is being presented to a conservative-dominated court — republican led. It’s one of two closely watched education decisions expected in the next few weeks, with the justices also in set to rule on affirmative action in higher education.
The program would provide individual borrowers who earn under $125,000 a year or are in households that make under $250,000 up to $10,000 in loan cancellations. Borrowers who qualified for Pell Grants — which are given to low-income students — would be eligible for loan cancellation up to $20,000.
Providing student loan relief was one of the main focal points of Biden’s 2020 presidential election campaign, pushing people to the polls once the possibility of alleviating debt was at the forefront of the conversation. He announced the program last August, but lower courts halted it before it could be implemented, with two challengers’ suits now before the Supreme Court.
The program is said to provide “breathing room” for families recovering from the pandemic. The administration cited studies for making the case that in addition to other life happenings of accumulated debt, heavy college loan debt makes it far more difficult for graduates to buy homes, save for retirement or start small businesses.
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