The United States Supreme Court recently heard an argument on the Biden Administration’s student loan forgiveness plan. The Biden plan could eliminate up to $20,000.00 in federal student loan debt for approximately 40 million borrowers. However, because of multiple legal challenges, federal courts have blocked the implementation of the Administration’s plan. Here are some things to know:

1. Supreme Court’s Decision Expected in June and Payments Resume 60 Days Thereafter

A decision on the student loan forgiveness plan is expected in June. Meanwhile, the Department of Education has announced that student loan payments will resume 60 days after the Court announces its decision. If no decision is forthcoming by June 30th, then student loan payments will resume 60 days thereafter.

President Biden has expressed concern that the Court will not uphold his student loan forgiveness plan. The opposition’s argument before the Court has focused on the Administration’s authority to implement the forgiveness plan pursuant to the HEROES Act. Presently, there is no backup plan should the President’s plan be struck down by the Court. However, the Administration could attempt to re-establish their forgiveness program under different legal authority, such as the Higher Education Act.

2. U.S. Department of Education

Currently, over 16 million borrowers have been approved for debt relief under the Biden Administration’s forgiveness plan. However, that relief is on hold pending the Supreme Court’s decision. And the Department of Education has removed the student loan forgiveness application from its website pending the court’s decision. For more information on student loans and repayment options, please visit the Department of Education’s website at The site provides various options for loan repayment and forgiveness.

If you have questions regarding this issue, or any bankruptcy issue, please contact our attorneys.