As 2023 commenced, many federal student loan borrowers were hopeful to witness President Joe Biden’s campaign promise to forgive student debt materialize. However, on June 30, their hopes were dashed when the Supreme Court, in a 6-3 decision, blocked Biden’s plan to forgive up to $20,000 per borrower earning less than $125,000 annually.
While President Joe Biden's ambitious student loan forgiveness plan faced a setback from the Supreme Court, the Biden administration has managed to alleviate federal loan burdens for millions of borrowers through alternative means. For many, this relief comes as a tax-free benefit from the federal government.
Read MoreThe loan forgiveness applies to participants of the voluntary Saving on a Valuable Education (Save) repayment plan who have consistently made payments for at least ten years. Additionally, only those who initially borrowed $12,000 or less for their education are eligible for exemption under this program.
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