Millions of borrowers may learn soon whether they could receive up to $20,000 in debt relief under President Joe Biden’s student loan forgiveness program. The fate of the unprecedented debt cancellation program lies with the Supreme Court, which is expected to decide to either uphold or strike down the proposal in late June or early July. The student loan forgiveness program, which Biden announced last August, has been on hold due to legal challenges.
An independent analysis from the Penn Wharton Budget Model found that about two-thirds of the student debt cancellation will go to households making $88,000 a year or less. How fast could borrowers see debt relief? If Biden’s program gets the green light, some borrowers won’t have to do anything to receive debt relief.