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Biden’s student loan forgiveness plan may be struck down: Here’s what to do next

The opinions expressed in this article are the writer’s own and do not reflect the views of Her Campus.
This article is written by a student writer from the Her Campus at TCNJ chapter.

The Biden administration promised in August of this year that up to $20,000 in student cancellation would be available to borrowers across the country. Student loans are a growing problem with rising tuition costs and interest rates, especially for lower to middle-income families. Biden’s proposal would be available to people with individual incomes below $125,000 and married couples making less than $250,000. 

However, these benefits are in danger of being voided by the Supreme Court which is currently processing two appeals from states declaring the initiative unlawful. 

The option to file for this relief is suspended on the federal government website and applications that are already submitted will be placed on hold until the high court makes a decision. Many students are counting on this relief plan to avoid debt and financial troubles in the future, and so many are left wondering what the next steps are. Here is some advice when considering your situation. 

Plan to make payments come January

There is still uncertainty whether the program will be blocked, but to stay on the safe side, prepare for the worst. The Biden administration has extended the loan repayment pause in light of the appeals, which will resume either 60 days after the court ruling or 60 days after June 30, 2023, whichever comes first. Borrowers should spend this time wisely making contingency plans and paying off any liabilities that would deter financial stability. It is best to talk to a financial advisor regarding your best course of action. 

Apply to other debt relief programs

Other government programs listed on the Department of Education website provide financial assistance to undergraduate students and alumni. However, these apply to a much smaller demographic than Biden’s plan, which is why it is important to fill out your FAFSA form every year as it can qualify you for grants, work-study funds, and federal loans. Private scholarships are another great option since they give funding directly, and there are many to choose from. 

Keep a close watch on the courts

Arguments will proceed in the Supreme Court on February 28, 2023, and people should expect a decision sometime in Spring. New developments are likely to develop during this time that could show negative or positive favor for approving loan forgiveness. Staying updated on the case prepares you for any unexpected hurdles and gives you peace of mind. 

Emma Ferschweiler is a TCNJ student who writes for Her Campus TCNJ!