What You Need to Know About Student Loan Forgiveness

Since the 1980s, the cost of college has increased dramatically—and so has the amount of money many students have to borrow in order to attend. These days, the typical undergraduate student with loans graduates with nearly $25,000 in debt. For young borrowers, the weight of that debt can ultimately change the trajectory of their lives.

In 2022, President Joe Biden announced his long-awaited plan to address the student loan crisis, stating that “an entire generation is now saddled with unsustainable debt in exchange for an attempt, at least, at a college degree.” His program would cancel $10,000 in federal student loan debt for people making less than $125,000 or households with less than $250,000 in income per year. Students who’ve received Pell Grants—meant for undergraduates who displayed exceptional financial need—would get an additional $10,000 in debt relief.

But the fate of Biden’s debt forgiveness plan—set to impact an estimated 43 million Americans—is currently in limbo. So far, it has been blocked by Republican-appointed judges on lower courts, and this week, the Supreme Court heard two challenges to the president’s historic plan. The court’s decision is expected by the summer.

For now, we’re diving into the impact of student loans on America’s students and how the promise of loan forgiveness can impact how young people view their future.