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President Biden’s sweeping plan to forgive student loan debt for millions of Americans is currently on hold. With the forgiveness program stuck in the courts, borrowers are also stuck wondering if they’ll ever see a dime of the highly anticipated relief. Right now, things don’t look great: As of this week the Biden administration is no longer accepting applications for student loan forgiveness.
Still, not all hope is lost. Here’s what to know about the administration’s legal challenges, and what other forms student loan forgiveness might take going forward.
Where Biden’s plan stands right now
On Monday the 8th U.S. Circuit Court of Appeals in St. Louis extended a previously temporary hold on Biden’s student loan forgiveness program. This ruling came days after a federal judge in Texas blocked the program. These efforts to block student loan forgiveness all claim that without congressional approval, Biden’s plan for debt relief was an overreach of power.
The Texas case was appealed and AP News reports the administration is likely to appeal the 8th Circuit ruling as well. The Education Department says on its federal student aid website that they are “seeking to overturn” the orders blocking the student debt relief program. With the Biden administration maintaining that they will keep fighting for this plan, student loan forgiveness is likely to end up before the Supreme Court.
What this means for you
For borrowers, the most visible consequence of these legal blows thus far is that applications for Biden’s student loan forgiveness plan are not currently being accepted. And while these legal holds may not be permanent, the timing is a concern: The pandemic pause on student loans comes to an end on Dec. 31, meaning millions of Americans will enter 2023 unsure about when and how they will be expected to resume payments.
As USA Today explains, there are only so many other forms debt relief might take. In theory, congress could cancel debt on its own—but with a Republican-controlled House taking power in January, that option doesn’t seem likely. Instead, it looks like the administration will keep molding the current plan until it takes a shape that holds up in the face of Republican-appointed federal judges. Unfortunately, the result of that process would likely be a much narrower plan for relief.
What you should do right now
The bottom line: Chances are you won’t see Biden’s plan for student loan forgiveness realized any time soon. And if/when the program comes to fruition, it likely won’t be as “sweeping” as originally announced.
This means that while student loan forgiveness stays stuck in the courts, you should get your repayment plan in order before the loans freeze ends next month.
How to find your loans (and loan providers)
Here’s a quick recap on how to figure out the current status of your student loans when repayment resumes in January 2023:
Head to studentaid.gov. Note: This is not the same portal you may typically use to make student loan payments (e.g., through a servicer like Sallie Mae). After logging in, select “My Aid” in the dropdown menu under your name. Your loan servicer(s) should appear in that section. Clicking on “Loan Breakdown” will show you a list of the loans you received, including loans you have paid off or consolidated into a new loan.
Once you confirm your loan company, visit that servicer’s website and log in to your account to ensure all your contact information is up to date so you do not miss any notifications from them during this process.
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