Biden Asks Supreme Court To Reinstate Student Loan Forgiveness — Here’s Where Program Stands Now (2024)

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Biden Asks Supreme Court To Reinstate Student Loan Forgiveness — Here’s Where Program Stands Now (2024)

FAQs

Was the student loan forgiveness stopped? ›

The Supreme Court issued a decision blocking us from moving forward with our one-time student debt relief plan. The information below is not up to date. Visit StudentAid.gov/debtrelief to learn more about the actions President Biden announced following the decision and find out how this decision impacts you.

Will student loans be taken out of 2024 taxes? ›

The Fresh Start program for borrowers with previously defaulted student loans will prevent withheld tax refunds through at least September 2024. And borrowers won't newly fall into default as payments resume. The White House announced a 12-month student loan on-ramp from Oct. 1, 2023 to Sept.

Who qualifies for the new student loan forgiveness? ›

Borrowers with only undergraduate debt would qualify for forgiveness if they first entered repayment 20 years ago (on or before July 1, 2005), and borrowers with any graduate school debt would qualify if they first entered repayment 25 or more years ago (on or before July 1, 2000).

Has the Biden administration canceled the student debt of 74,000 borrowers? ›

Today, my Administration approved debt cancellation for another 74,000 student loan borrowers across the country, bringing the total number of people who have gotten their debt cancelled under my Administration to over 3.7 million Americans through various actions.

Was Biden student loan forgiveness cancelled? ›

Even though the Supreme Court struck down Biden's signature student loan forgiveness program last year, the administration has been continuing to deliver debt relief through several existing programs that target certain groups of borrowers, including public-sector workers, those defrauded by their college and ...

What would happen if all student loans were forgiven? ›

Long term, a reduction in student loan debt could help improve the formation of small businesses and households, as well as spur an increase in homeownership. Blanket student loan debt forgiveness would mostly benefit people who would have likely paid off their loans over the long term.

Do you pay taxes on forgiven student loans? ›

Zoom in: Current tax law treats forgiven or canceled debt as taxable income, though there are some exceptions. If student debt is forgiven, it's treated as if the borrower earned additional income equal to the amount of debt forgiven, according to the independent tax policy nonprofit Tax Foundation.

Can the IRS take your refund for student loans? ›

The government may take your federal income tax refund if you are in default. Computer records of all borrowers in default are sent to the I.R.S. If you are in default on your federal student loans, all or a portion of your tax refund may be taken and applied automatically to your federal student loan debt.

Will there be taxes in 2024? ›

The deadline this tax season for filing Form 1040, U.S. Individual Income Tax Return, or 1040-SR, U.S. Tax Return for Seniors, is April 15, 2024. However, those who live in Maine or Massachusetts will have until April 17, 2024, to file due to official holidays observed in those states.

What is the Save Plan July 2024? ›

Starting in July 2024, payments for borrowers with only undergraduate student loans will be cut in half. Those monthly payment amounts are currently calculated to be 10% of your discretionary income, but in July 2024 that number will drop to only 5% of your discretionary income.

What happens to student loans after 20 years? ›

Borrowers who have reached 20 or 25 years (240 or 300 months) worth of eligible payments for IDR forgiveness will see their loans forgiven as they reach these milestones. ED will continue to discharge loans as borrowers reach the required number of months for forgiveness.

What is the 10 year rule for student loan forgiveness? ›

PSLF Process

Because you have to make 120 qualifying monthly payments, it will take at least 10 years before you can qualify for PSLF. Important: You must still be working for a qualifying employer at the time you submit your form for forgiveness.

Who is getting student loan debt cancelled? ›

This builds on additional actions the Biden-Harris Administration has taken to cancel debt for nearly 900,000 public service workers, 1.3 million borrowers cheated by their schools or borrowers covered by related court settlements, and nearly 550,000 borrowers with a total and permanent disability, including many ...

How many Americans have student loan debt? ›

Who has student loan debt? Roughly 43 million Americans have outstanding federal student loan debt — that's about 13% of the U.S. population, per census data. Source: Federal Student Aid, Portfolio by Age Q4 2023.

Who pays for the student loan forgiveness? ›

Canceling federal student loans will cost the government money that comes in part from taxpayer dollars. The Congressional Budget Office, which crunches the numbers, said President Biden's plan to cancel student loans could have added $400 billion to the government's expenses.

Has anyone actually had their student loans forgiven? ›

As of mid-July 2023, approximately 662,000 borrowers have qualified for forgiveness under the limited PSLF waiver. Although the limited PSLF waiver period has ended, some borrowers who submitted their applications prior to the end date may continue to have their applications processed from the waiver period.

Has anyone's student loan been forgiven? ›

Borrowers on the Saving on a Valuable Education income-driven repayment plan who originally took out $12,000 or less in loans at least 10 years ago have started being notified that their debt is forgiven, the administration announced Wednesday.

How long has student loan forgiveness been around? ›

The Public Service Loan Forgiveness (PSLF) program is a United States government program that was created under the College Cost Reduction and Access Act of 2007 signed into law by President George W.

Who won t qualify for student loan forgiveness? ›

Private student loans, by definition, are private and are not eligible to be forgiven. These are loans the borrower owes to student loan providers and not the federal government. Mr. Biden's plan won't change how these are repaid and borrowers should expect to continue to repay them as they have to date.

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