When President Joe Biden announced his federal student loan forgiveness plan last year, nearly 26 million Americans jumped on the chance for debt relief.
But in the almost five months since the program was announced, federal student loan holders have been left in the dark about if and when their debt could be canceled after several challenges came forward, largely from Republican-led states.
At least six lawsuits have been filed so far against Biden’s plan and an injunction was issued to temporarily halt debt relief as the program works its way through the courts.
Now, the case is headed to the U.S. Supreme Court where the justices are scheduled to hear arguments in February before ultimately deciding the program’s fate.
“We don’t know what’s going to happen,” said Jamie Kosh, president of the Pennsylvania Association of Student Financial Aid Administrators. “We have no feeling on how the Supreme Court could rule on this. We’re talking billions of dollars and millions of borrowers that could benefit from this.”
As student debt holders seemingly sit in limbo, here’s a look back on what’s been happening with the relief program and what the future could hold.
The proposal
The Biden administration in August announced plans for a one-time federal student loan debt relief program, which would impact millions of Americans and largely fulfill a campaign promise.
The program was based on the Higher Education Relief Opportunities for Students Act of 2003, also known as the HEROES Act, which allows the education secretary to waive regulations related to student loans during times of war or national emergency.
The act has been used by both the Trump and Biden administrations to pause federal student loan payments and interest during the pandemic, and it was used to issue multiple extensions on the pause beyond its original six-month period.
Under the program, individuals who are single and earn under $125,000 qualify for $10,000 in debt cancellation. Married couples who file taxes jointly qualify if their income is under $250,000.
Those who received a federal Pell Grant and meet income requirements could qualify for a total of $20,000 in cancellation.
The program only applies to federal loan balances that were granted before June 30. Any loans disbursed after July 1 are not eligible.
Pushback
After the program was announced, however, legal battles quickly ensued.
