Supreme Court Blocks Student Loan Debt Relief Plan
Pell Grant Borrowers, Other Changes to Student Loan Forgiveness Programs Announced
One-Time Debt Relief Plan Blocked
The Supreme Court has blocked the Biden administration's one-time student loan debt relief plan, which would have forgiven up to $20,000 for Pell Grant borrowers and $10,000 for other federal student loan borrowers.
Additional Relief for Pell Grant Borrowers
Despite the setback, borrowers who received Pell Grants remain eligible for additional debt relief. For every $1,000 borrowed above $12,000, borrowers can receive forgiveness after an additional year of payments.
Changes to Public Service Loan Forgiveness Program
In a separate announcement, the Department of Education implemented regulatory changes to the Public Service Loan Forgiveness (PSLF) Program, effective July 1, 2023. These changes are designed to make it easier for borrowers to qualify for loan forgiveness.
Additional Debt Relief Approved
Additionally, the Biden-Harris Administration announced the approval of $49 billion in additional student loan debt relief for 736,000 borrowers.
Furthermore, an additional $58 billion in debt relief was approved for 777,000 borrowers.
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