Here’s When The Supreme Court Will Rule On Student Loan Forgiveness

A Supreme Court decision on President Joe Biden’s sweeping student loan forgiveness initiative is imminent. A ruling has long been expected by the end of June, but the Court may be poised to release its opinion before then.

Here’s the latest.

Biden’s Student Loan Forgiveness Plan To Be Decided By The Supreme Court

Biden’s sweeping, one-time student loan forgiveness plan, which he first unveiled nearly a year ago, would provide up to $20,000 in one-time debt relief. Borrowers must have government-held federal student loans to qualify, and must have earned income under $125,000 (or $250,000 if married and filing a joint tax return) in either 2020 0r 2021.

The Education Department had approved millions of borrowers for relief in the months following the program’s enactment. But legal challenges quickly halted the initiative by the fall after two federal courts suspended relief. The Biden administration filed appeals of those decisions, which ultimately ended up at the Supreme Court.

Biden managed to beat back efforts by Congressional Republicans to repeal his student loan forgiveness plan legislatively. Earlier this month, he vetoed a bill that would have nullified his plan and reversed his most recent extension of the student loan pause. He also was able to exclude a student loan forgiveness repeal from the bipartisan federal spending bill that raised the debt ceiling.

With legislative repeal efforts effectively dead at this point, the fate of Biden’s student debt relief plan lies squarely with the Supreme Court.

Supreme Court Decision Could Be Issued Very Soon

The Supreme Court issues decisions on designated days. As of today, there are only two more June dates on the Court’s calendar when opinions are set to be issued: Thursday, June 15 and Friday, June 16. So the decision on Biden’s student loan forgiveness plan could very well be released by the end of this week.

It is possible that the Court could delay release of the decision to later in the month. The Court has a scheduled conference on Thursday, June 22, and additional opinions could potentially be released on that date. The Court could also add additional dates in June for releases of opinions. Provided the Court issues its opinion prior to its summer recess (which is usually in July), there are “no rules” regarding the issuance of decisions.

However, as of right now, there is no indication that the Court will add additional opinion dates to its calendar. Typically, the Supreme Court issues unanimous (or near-unanimous) and non-controversial decisions earlier, and saves more contentious rulings for very late in its term. Last week, the Court issued a landmark decision on the Voting Rights Act in a 5-4 ruling. Given the release of that decision already, there is no reason to think that the issuance of the student loan forgiveness decision will be further delayed.

How Biden Will Respond To Supreme Court Decision On Student Loan Forgiveness

A majority on the Supreme Court appeared inclined during oral arguments to strike down Biden’s student debt relief plan. But the case could turn on the issue of standing — whether the parties that brought the legal challenges have a sufficient basis to sue.

Ultimately, if the Court upholds Biden’s student loan forgiveness plan, the Education Department will likely be able to start discharging balances for approved borrowers relatively quickly. The department would also reopen the application portal for borrowers who have not yet applied. With the student loan pause now definitively ending in August, the administration will likely try to prioritize as much debt relief as possible before borrowers have to resume making payments.

One the other hand, if the Supreme Court strikes down the student loan forgiveness plan, the administration will have a number of less-than-ideal options. A further extension of the student loan pause now seems very unlikely. Borrower advocates have been pushing the administration to reissue the plan under a different legal authority, but officials have given no public indication that this is under serious consideration. The Biden administration may instead rely on existing student loan forgiveness initiatives and a proposed overhaul of repayment plans to provide additional benefits to borrowers.