"The Supreme Court effectively killed President Joe Biden's $400 billion student loan forgiveness plan on Friday, in a ruling that affects more than half a million people in Massachusetts. That's how many Bay Staters applied for student debt forgiveness of up to $20,000 for federal borrowers, and more than 300,000 applications had been approved," NBC Boston reports.
"But the nation's high court ruled that the Biden administration overstepped its authority with the plan, which didn't get the approval of Congress. When the three-year pandemic-era pause on student loan repayments ends on Sept. 1, most borrowers will owe the same amount they did in 2020.
... While the court's decision means student loan debt won't be wiped out, it won't add new debt to anyone's balance.
'Student loan repayment has been on pause for over three years,' nasfaa.org Director of Government Relations Rachel Rotunda explained. 'Going back to the beginning of the pandemic, we saw a pause in both student loan repayment as well as interest accrual put in place. So borrowers have not been required to be making monthly payments since that time.'"
NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.
Publication Date: 6/30/2023