Supreme Court ruling impacts loan forgiveness for 72K D.C. borrowers
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About 72,000 D.C. residents stood to benefit from President Biden's loan forgiveness plan before it was struck down by the Supreme Court last week.
Why it matters: Federal student loan payments are coming due in October for the first time since the pandemic began, and millions of Americans will struggle to make the payments, Axios' Caitlin Owens reports.
Catch up fast: Biden's proposal would have wiped out up to $10,000 for borrowers under a certain income cap and up to $20,000 for Pell Grant recipients. It would have cost the feds around $400 billion over the next decade.
By the numbers: D.C. borrowers owe more than $6 billion in federal student loans. The average borrower in the District owes nearly $55,000, according to government data.
- It checks out that the District is often cited as one of the most highly educated places in the country.
State of play: Biden is looking to other avenues to give borrowers a break, though the effects will be noticeably smaller, at least for individual borrowers.
- Biden vowed to pursue a new path to debt relief, which the Department of Education has initiated, but acknowledged that "it’s going to take longer."
- He also announced a one-year on-ramp for loan repayments, during which borrowers who miss payments won't be reported to credit bureaus, placed in default, or referred to debt collection agencies.
What's next: For now, student loans will begin accruing interest again starting Sept. 1.
Go deeper: How to find student loan information before payments resume