Student loan borrowers began 2023 with money and hope. The year will end with resumed monthly payments and only limited debt relief.
At the start of the year, student loans remained in their pandemic pause, as President Biden’s debt relief plan headed to the Supreme Court. But the administration decided that once the Supreme Court ruled on the legality of his loan forgiveness plan — regardless of the outcome — borrowers should have to restart their payments.
In June, the conservative-majority court ruled Biden’s plan to forgive at least $10,000 for all student loan borrowers was illegal.
“I think the low point is definitely the loss at the Supreme Court and, with that, payments coming back on. I think that’s actually in some ways equally as bad to see [loans turned back on] after we fought so long to keep them off,” said Natalia Abrams at the Student Debt Crisis Center (SDCC).
The White House moved forward from the loss by announcing a new income-driven repayment (IDR) plan and intentions to work toward an alternative route for widespread debt relief.
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Chief Justice John Roberts
Chief Justice John Roberts is seen during the funeral service of the late Justice Sandra Day O’Connor