The Supreme Court ruled that the Biden administration’s $400 billion plan to wipe out some federal student debt was not authorized by Congress. The 6-3 decision from the court’s conservative majority effectively denies roughly 40 million Americans who could have had up to $20,000 in student debt relief.
How does this affect Illinois?
- Illinois residents led the nation in applications for student debt relief last year.
- Friday’s decision is now expected to impact more than 1.5 million people in the state who applied for relief.
- Illinois borrowers have some of the largest student loan debts in the country, with an average of $37,869.
What happens next?
- After a more than three-year pause, student loan interest will resume on Sept. 1, and payments will be due starting in October.
- The Biden administration announced a 12-month “on-ramp” to repayment plan starting in October to support financially vulnerable borrowers.
- The Illinois Federation of Teachers stated they will “continue to work with the legislature to revamp higher education funding in Illinois to ensure that students have access to an affordable, equitable education.”
Are there other options for borrowers?
- There are other types of student loan forgiveness you may still be eligible for, including loan forgiveness for teachers, Perkins Loan cancellation or discharge, and more.
