President Biden’s student loan forgiveness program would have canceled up to $20,000 of student loan debt until it was struck down by the U.S. Supreme Court. It’s estimated that nearly 43 million borrowers would have been eligible for student loan forgiveness. Given the far-reaching impact of this ruling, it’s important for employers and their advisers to understand the implications for working Americans.
While the administration has since introduced an income-driven student loan repayment plan called SAVE, HR and benefit professionals can expect an increased level of benefits-related inquiries in the coming months as new financial pressures mount. Student loan interest resumed on September 1 and payments will begin in October after a three-year pause due to the COVID-19 pandemic.
