Supreme Court Strikes Down Student Loan Forgiveness Program: Impacts and What Comes Next

"The Supreme Court, in a 6-3 decision, ruled President Joe Biden’s loan forgiveness plan was an unlawful exercise of presidential power because it had not been explicitly approved by Congress," NBC Miami reports.

"... This ruling comes as student loan repayments are set to start in the fall.

... The Consumer Financial Protection Bureau issued a warning that approximately one in five student loan borrowers may find it challenging to meet their obligations once payments resume in the fall.

Rachel Rotunda, the Director of Government Relations at the National Association of Student Financial Aid Administrators (NASFAA), expressed concern for those who graduated during the pandemic.

'So these borrowers aren't as familiar with the repayment system. Again, they've never had to make a payment. They maybe don't know who their student loan servicer is. So that's a group that we're thinking about quite a bit,' Rotunda said."

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

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