Updated Dec 1, 2022 - Economy

Supreme Court: Biden's student loan forgiveness program will remain blocked for now

Photo of Joe Biden speaking from a podium

President Biden delivers brief remarks during the Congressional Picnic on the South Lawn of the White House on July 12, 2022 in Washington, D.C. Photo: Chip Somodevilla via Getty Images

The Supreme Court on Thursday declined to lift an injunction temporarily blocking President Biden's student debt relief program and agreed to hear the case in February.

Why it matters: The prolonged uncertainty of the program's future has left millions of borrowers in financial limbo as litigation from several challengers plays out. Biden has said he believes the program is legal.

Worth noting: The Biden administration has warned of "an historically large increase" in federal student loan delinquency and defaults without its forgiveness plan.

The big picture: Biden has said more than 40 million borrowers could benefit from the debt relief.

  • The White House extended the pause on student loan repayments through June 30, 2023 so the high court would have an opportunity to hear it in its current term.

Editor's note: This story has been updated with additional background.

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