Did the Supreme Court rule against Biden's student loan forgiveness? (2024)

Did the Supreme Court rule against Biden's student loan forgiveness?

In a pair of recent cases, the U.S. Supreme Court ruled on the Biden administration's student loan forgiveness program. In Biden v. Nebraska, which was decided 6-3, the court struck down the administration's student loan forgiveness program and agreed with the six challenging states that they had standing to sue.

Did the Supreme Court issue a decision invalidating the Biden Harris administration student debt relief plan?

WASHINGTON — The Supreme Court on Friday invalidated President Joe Biden's student loan debt relief plan, meaning the long-delayed proposal intended to implement a campaign trail promise will not go into effect.

How will I know if my student loan will be forgiven?

Your loans should automatically qualify for forgiveness after you've spent 20 or 25 years in repayment. Reach out to your loan servicer about any steps you may need to take.

Will student loans take my taxes in 2024?

Collection activities are currently paused for all federal student loans through September 2024, which should protect your 2022 and 2023 federal and state tax refunds.

Did Supreme Court block student loan forgiveness?

In a stinging defeat for President Joe Biden, the Supreme Court blocked the administration's student loan forgiveness plan Friday, rejecting a program aimed at delivering up to $20,000 of relief to millions of borrowers struggling with outstanding debt.

Did they block student debt relief?

Last June, in the wake of the Supreme Court's decision blocking the Biden-Harris Administration's original student debt relief plan, President Biden vowed to keep fighting to deliver student debt relief to borrowers held back by the burden of student loan debt.

How likely is it that my student loans are forgiven?

Income-driven repayment forgiveness stats

As of June 1, 2021, only 157 of potentially millions of borrowers have received debt cancellation through income-driven repayment forgiveness, according to a March 2022 report by the Government Accountability Office.

What will happen to my credit when my student loans are forgiven?

How will student loan forgiveness affect your credit scores? If you're able to secure loan forgiveness, you might see your credit scores drop slightly. That's because student loans, like any other loan, contribute to your credit mix, or the different types of debt that you hold.

What student loans are not eligible for forgiveness?

You're not eligible for federal student loan forgiveness programs if you have private loans, but there are other strategies for managing private loan debt.

Can the IRS come after you for student loans?

The government may take your federal income tax refund if you are in default. Computer records of all borrowers in default are sent to the I.R.S. If you are in default on your federal student loans, all or a portion of your tax refund may be taken and applied automatically to your federal student loan debt.

Do I need to report student loan forgiveness on my taxes?

However, borrowers working toward loan forgiveness have been exempt from taxes thanks to the American Rescue Plan Act of 2021. This measure made forgiven student loans exempt from federal income taxes, but it only applies to loans that are discharged between January 1, 2021, and December 31, 2025.

Are forgiven student loans considered taxable income?

The amount forgiven is typically includable in your gross income and subject to income taxes unless a tax law specifically exclude it from taxable income. Your student loan lender will report a forgiven balance on Form 1099-C, Cancellation of Debt.

How soon could the Supreme Court rule on student loan forgiveness?

The court generally releases most of its opinions by the end of June. The Supreme Court isn't bound by specific rules about when a decision needs to be made, although the court is typically in recess from late June until the first Monday in October.

Why are courts blocking student loan forgiveness?

April 5 (Reuters) - A U.S. appeals court has blocked the Biden administration from enforcing a rule that would make it easier for people defrauded by their colleges or universities to have their student loans forgiven, saying key provisions were "almost certainly unlawful."

What 6 states sue to block student loan forgiveness?

The states — Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina — jointly filed a 36-page complaint in the U.S. District Court for the Eastern District of Missouri, the second legal challenge this week against President Joe Biden's debt cancellation plan.

Did Biden release student loan debt?

FACT SHEET: President Biden Cancels Student Debt for more than 150,000 Student Loan Borrowers Ahead of Schedule. Today, President Biden announced the approval of $1.2 billion in student debt cancellation for almost 153,000 borrowers currently enrolled in the Saving on a Valuable Education (SAVE) repayment plan.

Did student loans get suspended?

Student loan payments resumed October 2023

Interest on student loans restarted on September 1, 2023, when the COVID-19 payment pause ended.

Did my student loans go away?

Do student loans ever go away? Student loans will remain on your credit reports and in your life until their paid in full or you qualify for Public Service Loan Forgiveness, income-based repayment forgiveness, or some other discharge or cancellation opportunity that wipes your remaining loan balance.

How many people have actually had their student loans forgiven?

“The data released today once again make clear that the Biden-Harris Administration's relentless efforts to fix the broken student loan system are paying off in a big way, with more than 3.6 million borrowers now approved for nearly $132 billion in loan forgiveness.

Has anyone actually gotten student loan forgiveness?

Under the Biden administration, more than 3.7 million student loan borrowers have had their debt forgiven by various executive actions.

Does student loan forgiveness hurt your credit?

Generally, when a student loan is forgiven, it shouldn't impact your credit in a negative way. As long as your loans were in good standing at the time they were discharged and your accounts are being reported properly to the credit reporting bureaus, you won't see a huge difference in your score.

Why does my student loan say paid in full?

You may notice your former servicer has cleared your loan account. For example, your loan balance may come up as “paid in full” on your former servicer's website or on your credit report. This does not mean you've received loan forgiveness. This is part of the loan transfer process.

Why did my student loan disappeared from my credit report?

There are specific situations when a student loan can be removed from a credit report and nearly all of them are related to inaccuracies. Some examples of inaccurate information include: Missed or late payments (either during regular repayment periods or forbearance and deferment) Student loan default.

Why did my student loans disappear?

Why did my student loans disappear from my credit report? Your student loan disappeared from your credit report because your loan servicer made a mistake, or you fell into default more than 7 years ago. Remember, even if your loans no longer appear on your credit report, you're still legally obligated to repay them.

Why you shouldn t apply for student loan forgiveness?

Opponents are concerned that wide-scale student loan forgiveness is poorly targeted and will invariably benefit wealthy student loan borrowers who don't need their student loans cancelled. For example, graduate school debt accounts for more than 40% of all outstanding student loan debt.