Biden's Controversial Student Loan Forgiveness Plan Sparks Legal and Financial Concerns

The recent announcement by the Biden administration to forgive $39 billion of student loan debt for borrowers in income-driven repayment plans is different from the broad debt-cancellation plan that was struck down by the Supreme Court. The new action is based on a different legal precedent and focuses on borrowers who have been in repayment for decades. Experts argue that the plan is on "sound legal footing" as it aligns with Congress' authorization for loan forgiveness in income-driven repayment plans. Questions over legality are largely irrelevant for borrowers who receive relief before any potential lawsuits arise.