July 23, 2024

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Biggest student loan updates from 2023 and what’s coming in 2024

2 min read

Whether it has been a good or bad year for student loan borrowers depends on who you ask. 

While a large number of borrowers got life-changing emails this year saying their loans had been forgiven, plenty of others received bills in October that they would, in fact, be expected to pay.

Regardless, there has been a lot of student loan news to keep track of this year. Here’s a quick recap of the biggest student debt stories, plus updates to look out for in 2024.

Supreme Court strikes down forgiveness

Many federal student loan borrowers entered 2023 hopeful to see President Joe Biden’s campaign promise to forgive student debt come to fruition. That hope was dashed on June 30, when the Supreme Court voted in a 6-3 decision to block Biden’s plan to forgive up to $20,000 per borrower earning less than $125,000 a year.

Some were skeptical the plan was ever going to work, but when borrowers were notified late in 2022 that their applications for the forgiveness plan were approved, it felt like a real possibility. 

But the highest court ruled that the Biden administration didn’t have the authority to cancel the debts, and the program was barred from proceeding.

Debt forgiveness plan B moves forward 

Immediately after the Supreme Court ruling on debt forgiveness came down, President Biden announced he would be pursuing debt forgiveness under the Higher Education Act, which would require a process known as negotiated rulemaking.

In this process, the public has the opportunity to submit topics for consideration, then a committee of stakeholders comes together to propose a rule. The general public then has another chance to comment or suggest changes before the new rule goes into effect.

It’s a lengthy process, but the first phase wrapped up earlier this month. A group of negotiators made up of legal experts, student loan borrowers, advocates and more met with the Department of Education for six sessions from October through December to draft proposed legislation that…

2023-12-24 09:00:00

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