Supreme Court Ruling Could Have “Ripple Effect” On 26 Million People

( According to a report, the fate of almost a million Pennsylvanians is uncertain after the Supreme Court cast serious doubt on the constitutionality of the Biden administration’s proposal to cancel well over $400 billion in federal student loan debt.  

Hours of oral arguments were given in two cases relating to the proposal, and the justices weighed on whether or not the government had the authority to erase student debt. More than 26 million people, including roughly 80,000 within the Pittsburgh area, filed for debt relief last year, but the court’s conservative majority looked set to rule against it. 

Towards the end of June, the future of those with government loans will be clear. Should the court issue its verdict that month, payments, which had been suspended because of the epidemic, would start back up again on June 30. 

While the court’s skepticism during the hearings didn’t come as a surprise to local experts in Pittsburgh,  they do warn that the ruling might have long-lasting effects on individuals and families that hold loans. 

In response to the epidemic and its ongoing repercussions, reports show the government has proposed providing several thousand dollar gifts to those holding federal loans, with consideration to their income. 

The plan was based on the HEROES Act of 2003, which gives the secretary of education authority to relax rules around student loans in war.  

While this matter is being heard in court, the loan forgiveness is on hold.  

According to reports, despite public disagreements with Congress, the Biden administration waived billions of dollars in student loan debt over the years.

Federal student loan holders may seek debt forgiveness under a lesser-known procedure if their institution committed fraud or other violations of state law. The number of persons who have applied since the official application was launched in 2015 is over 700,000.

The program’s overall momentum slowed under Trump but has picked up speed under Biden.