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Biden-Harris Administration's Student Loan Debt Relief Plan Blocked by SCOTUS

On August 24, 2022 President Biden announced that the U.S. Department of Education would provide up to $20,000 in targeted one-time student debt cancellation to borrowers with loans held by the Department of Education based upon two factors: (1) an income threshold and (2) prior receipt of a Federal Pell Grant. Although many borrowers applied for the program, a series of court orders temporarily blocked the efforts of the Student Loan Debt Relief Plan. 

The case of BIDEN, PRESIDENT OF THE UNITED STATES, ET AL. v. NEBRASKA ET AL. was brought before the United States Supreme Court. On June 30, 2023 the SCOTUS issued a decision against the Student Loan Debt Relief Plan; prohibiting the U.S. Department of Education from implementing the executive action of the plan.

Federal student loan borrowers should proceed with preparations for repayment without any cancelation as previously promised by the Student Loan Debt Relief Plan; given that it has been struck down. Interest is set to begin accruing on federal student loans once more on September 1, 2023. For borrowers repayment, payments will resume on October 1, 2023.

Preparing for Repayment

If you are a federal student loan borrower preparing for repayment, it is recommended that you:

  1. Review your federal student loan borrowing history on
  2. Make sure that you know which loan servicer is yours and check that you can successfully access their portal to review statements and make payments. 
  3. Learn more about what repayment plans are available to you and apply for the plan that works best for you and your financial situation.
  4. Use the Loan Simulator to help you determine what your monthly payments look like so you can prepare your personal finance budget accordingly.
  5. If applicable, explore Public Service Loan Forgiveness and Teacher Loan Forgiveness programs. 

Helpful Resources and Links

Here are some helpful links regarding the Student Loan Debt Relief Program and federal student loan borrowing: