880,000 eligible Arizonans won't receive student loan forgiveness
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Friday's Supreme Court ruling striking down President Biden's student debt relief plan means hundreds of thousands of Arizonans won't get loan forgiveness.
Why it matters: An estimated 880,000 Arizona residents were eligible for the program, which would have forgiven as much as $20,000 of student loans per person.
- Nearly 500,000 Arizona residents applied or were automatically eligible for relief before legal proceedings blocked the plan from taking effect last fall, the White House said in January.
By the numbers: Arizonans collectively owe $32.6 billion in student debt, according to Federal Student Aid, an office within the U.S. Department of Education.
- That's an average of about $36,000 per borrower.
Catch up quick: The loan forgiveness program was part of the Biden administration's three-part plan released last August to help working- and middle-class borrowers transition back to regular payments after pandemic-related support expired.
- A Texas court struck down the Biden administration's plan in November. The Justice Department filed an emergency injunction in November asking for the Supreme Court to lift the blocks on the relief plan.
- Instead, the court ruled that the federal government exceeded its authority and deemed it unconstitutional.
The big picture: The ruling dealt a major blow to Biden's commitment to borrowers and a hoped-for cornerstone of his legacy as he seeks a second presidential term, Axios' April Rubin reports.
Be smart: Income-driven repayment plans are still on the table for federal student loan borrowers. These set monthly amounts would be based on income and family size, according to Federal Student Aid.
- "Most federal student loans are eligible for at least one income-driven repayment plan," Federal Student Aid said. "If your income is low enough, your payment could be as low as $0 per month."
What's next: The White House finalized a new student-loan proposal within hours of the Supreme Court decision, and Biden pledged there will still be more to come, Axios' Caitlin Owens reports.