Supreme Court Ruling on Student Loan Waiver: What Does It Mean for You?
Student Loan Waiver and the Supreme Court Verdict
Student loan waiver
is a process that can allow borrowers to have their student loan debt reduced or forgiven. There are several different types of student loan waivers, each with its own eligibility requirements.
In June 2023, the Supreme Court ruled against the Biden administration's plan to cancel $430 billion in student loan debt. The court's decision was a setback for student borrowers, but it did not end the possibility of a student loan waiver.
In this article, we will discuss the Supreme Court's verdict on student loan waivers, the different types of student loan waivers, and the future of student loan forgiveness.
What is Student Loan Waiver?
Student loan waiver is a process that allows borrowers to have their student loan debt reduced or forgiven. There are several different types of student loan waivers, each with its own eligibility requirements.
Some of the most common types of student loan waivers include:
Public service loan forgiveness: This program forgives the remaining balance on federal student loans after borrowers have made 120 qualifying payments while working full-time in public service.
Total and permanent disability discharge: This program forgives the remaining balance on federal student loans if borrowers are determined to be totally and permanently disabled.
Employer-sponsored student loan forgiveness: Some employers offer student loan forgiveness programs to their employees. These programs typically require borrowers to work for the employer for a certain period of time and make on-time payments on their student loans.
Borrower defence to repayment: This program allows borrowers to have their student loan debt discharged if they can prove that they were misled or defrauded by their college or university.
The Supreme Court Verdict
In June 2023, the Supreme Court ruled against the Biden administration's plan to cancel $430 billion in student loan debt. The court's decision was a setback for student borrowers, but it did not end the possibility of student loan forgiveness.
The court's decision was based on the fact that the Biden administration did not have the authority to cancel student loan debt under the Higher Education Act. The court found that the Higher Education Act only allows the Department of Education to "waive or modify" existing statutory or regulatory provisions, not to rewrite the statute from the ground up.
The Future of Student Loan Waiver
The Supreme Court's verdict on student loan waiver is a setback, but it does not mean that student loan forgiveness is impossible. The Biden administration is still exploring other ways to provide student loan relief, such as expanding the public service loan forgiveness program and creating new employer-sponsored student loan forgiveness programs.
In addition, Congress could pass legislation that would allow the Department of Education to cancel student loan debt. However, it is unclear if Congress will be able to pass such legislation, as it would likely face opposition from Republicans.
What Can Student Borrowers Do?
Student borrowers who are affected by the Supreme Court's verdict should continue to make their student loan payments. They should also contact their loan servicer to see if they are eligible for any other types of student loan forgiveness.
In addition, student borrowers should contact their elected officials and urge them to support legislation that would allow the Department of Education to cancel student loan debt.
Conclusion
The Supreme Court's verdict on student loan waiver is a setback, but it does not mean that student loan forgiveness is impossible. There are still several ways that student borrowers can get their student loan debt reduced or forgiven.
Student borrowers who are affected by the Supreme Court's verdict should continue to make their student loan payments and contact their loan servicer to see if they are eligible for any other types of student loan forgiveness. They should also contact their elected officials and urge them to support legislation that would allow the Department of Education to cancel student loan debt.
Additional Resources
National Consumer Law Center: https://www.nclc.org/
Supreme Court's Verdict on Student Loan Waiver: https://www.supremecourt.gov/opinions/22pdf/22-506_nmip.pdf
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