What is Biden v. Nebraska Student Loan Claim?
Alumni and alumni of colleges across the country are looking forward to hearing back about student loan forgiveness. While some have had their applications approved, they may not see the money soon. The Biden v. Nebraska student loan lawsuit put things on hold. But what is this lawsuit and what does the future of student loans look like?
What is Biden vs. Nebraska?
After President Biden announced the student loan relief program, Nebraska and six other states challenged the program, saying it violated the separation of powers and the Administrative Procedure Code.
An emergency injunction was moved on November 14, as the Biden administration appealed to the US Supreme Court on November 18. On December 1, the US Supreme Court agreed to hear the case.
The original oral argument will not be heard until February 28, with a decision to be made after that date.
What does student loan forgiveness look like in the future?
There are a few different aspects of student loan forgiveness and repayment that student loan litigation in Nebraska will affect in the coming months and years.
First, while student loan payments are suspended, repayments will begin again in 2023. Payments are due either 60 days after the conclusion of the debt forgiveness lawsuit or 60 days after June 30, 2023, whichever comes first.
Second, a new income-based payment plan may be on the horizon soon. Students can get the chance to pay back their loans at the rate of 5% of their income. Those with $12,000 or less after 10 years of paying off the loan can forgive the balance.
Third, the Department of Education (DoE) said it will look into more programs that will help borrowers. With the new year coming in, come some new changes that reduce the requirements to qualify for debt forgiveness through the Public Service Loan Forgiveness Program. In addition, the Department of Education is taking another look at student loan defaults to see where improvements can be made to reduce the consequences for borrowers.
The news about student loan forgiveness is constantly changing. People with student loan debt should keep a close eye on the upcoming Supreme Court case to see where they stand regarding their finances.