Millions are in financial limbo when the Supreme Court has blocked the plan proposed by President Biden to forgive student loans.
Borrowers in financial limbo (Photo: Money)
Supreme Court Blocks President Biden’s Plan, Leaving Borrowers in Financial Limbo
Magnolia State reports that 43 million student loan borrowers are in financial limbo due to the Supreme Court blocking Biden’s proposed plan to cancel up to $400 billion students in debt.
According to the reports, student loan borrowers have a combined student debt of $1.76 trillion, leaving them in a state of financial limbo. The first-generation student borrowers felt the most impact due to the statistics from federal service that they borrow more than the non-first-generation student loan borrowers. Due to this, the data showed that they are more in financial limbo than the non-first generation.
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President Biden’s New Plan: Resolving Borrowers’ Financial Limbo?
Yahoo News reports that although Biden’s student loan forgiveness plan has been struck down, their administration passed a separate plan to write off $39 billion in student debt. The big question now is whether these new measures will relieve student loan borrowers and prevent them from being stuck in financial limbo.
The reports stated that the separate plan that Biden’s administration passed would impact thousands of borrowers with income-driven payment (IDR) plans for their federal student loans. The IDR loan allows student loan borrowers to pay reduced, income-based monthly payments over 20-25 years.
The IDR program ensures that first-generation student loan borrowers are not trapped in a state of financial limbo.
