Loan Wolves

The debate continues—and the future is far from certain

Student loan forgiveness has understandably been a hot topic lately. The program, first unveiled by President Biden in August, will enable some borrowers to cancel up to $20,000 in debt.

While applications are now open and the administration has announced that applicants who file for forgiveness before mid-November should see results by the new year, questions remain. The biggest and most important of those questions is the impact of the continuing political debates over the issue and the resulting judicial challenges. Some of those challenges are already in motion in lower courts, and some Republican lawmakers and political groups are already appealing to the Supreme Court—where this issue almost certainly is destined to end up.

The odds are still better than average that the program remains in place, but there is a good chance that will need to be modified in some way to appease its opponents or sustain future legal challenges. The best thing to do for anyone who might benefit from this program (or anyone who has a loved one who could benefit) is to keep a close eye on political and judicial developments. A great way to stay in touch with the latest is to sign up for federal email updates by following this link, entering your email, and selecting the option “marked NEW!! Federal Student Loan Borrower Updates.”

In the meantime, it’s a good idea to familiarize yourself with some of the more granular details about how the program works, who is eligible for relief, and how to apply. There are some great media resources out there, but the best way to make sure you are getting accurate information that pertains to your specific circumstances is to discuss the program with a trusted financial advisor.

 

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