About $441 billion in student loan balances are eligible for forgiveness under the plan, according to one report. (iStock) The Supreme Court will hear two cases against President Joe Biden’s student loan forgiveness plan on Tuesday.
The controversial proposal could affect millions of federal student loan borrowers. The plan aims to forgive up to $10,000 in federal student loans or up to $20,000 for Pell Grant recipients.
About $441 billion in student loan balances are eligible for forgiveness under the plan, and it could eliminate balances for almost 40% of federal student loan borrowers, according to a report by the Federal Reserve Bank of New York.However, the president’s initiative has faced several lawsuits.
Two of those will come before the Supreme Court. In one case, the states of Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina have argued the plan is unlawful and would harm their tax revenues.