The Biden administration’s student loan forgiveness plan has been shut down, leaving the 26 million borrowers who have already applied for debt relief in financial limbo. However, the story doesn’t end there, and employers and employees alike need to be prepared for what might come next.
Biden’s one-time student loan forgiveness was struck down earlier this month by Texas federal court judge Mark Pittman as “an unconstitutional exercise of Congress’s legislative power.” In response, the Biden administration is extending student loan payments until after June or whenever the student loan forgiveness plan is able to move forward — monthly loan payments were initially supposed to resume in January, buying borrowers a little more time.
