WEST HAVEN, Conn. (WTNH) — The U.S. Supreme Court’s ruling Thursday placing student loan forgiveness on hold, and graduates should still plan to pay back what they owe, according to a University of New Haven lecturer.
“This is a matter of public policy, and we can determine the economic impact of that public policy, and determine who we want to provide benefits to, just like any other subsidy program,” said Brian Marks, who teaches business law for the Pompea College of Business and is also a lawyer and economist. “And that’s where the politics come into play.”
The court will review the Biden administration’s student loan forgiveness program in February.
Under the plan, federal borrowers who make less than $125,000 a year can receive up to $10,000 in debt relief. Those who receive Pell Grants can receive up to $20,000. The program is estimated to cost about $400 billion over 30 years.
Nearly 26 million borrowers applied to have some of their student loan debt erased before the court put the injunction in place. While the government has approved 16 million applications, no debt has been canceled.
The February hearing will expedite the process, and a decision should happen by late June. That’s two months before the end of the newly extended pause on loan payments.