Supreme Court Will Decide – Student Loan Forgiveness
President Biden’s plan to forgive student loan for tens of thousands across the country will go under an official ruling by the U.S. Supreme Court. Announced during his 2020 presidential campaign, Biden launched a nationwide program to forgive up to $10,000 of student-loan debt for middle-to-low-income borrowers. The move, however, did come at a cost of over $400 billion dollars, spanning the course of an estimated 30 years into the future. In disapproval, several lawmakers and citizens criticized the ability of such an act to be passed by the executive branch, and whether the POTUS has the power to declare and enact such a large debt-relief program.
This prompted Republican officials in six separate states to claim how the unjustified power Biden used will inflict pain on revenues and tax receipts for their respective states. They hope that taxpayer shouldn’t be at the losing end of the gracious plan and have brought a lawsuit to the Supreme Court, where they have now stepped in to take matters into their own hands. By an approximate date of June 2023, the Supreme Court will have a ruling for the student-loan forgiveness plan, testing specifically whether those who sued will be harmed financially by the plan. Regardless, the plan has been enacted for a couple of months now but will remain on pause until the High Court’s decision next year.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.