Is There a Future for Student Loans?

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Claire Ballantine: How do you think student loans are going to play out in the future now that everyone knows they cost a whole lot of money and you may not be able to pay them back? She says she thinks one, at least short-term, effect is fewer people taking out student loans. Ballantine: We're going to see a lot of debate over what the executive branch has the power to do in terms of helping student loans.

President Biden’s plan to forgive federal student loan debt for millions of Americans has been frozen since a handful of Republican-led states sued to stop it. They argue the president doesn’t have the power to wipe away billions of dollars of debt on his own. It’s now up to the US Supreme Court to decide if they’re right.

Bloomberg Supreme Court correspondent Greg Stohr joins this episode to talk about the arguments on both sides, and where the 6-3 conservative majority might come down. And personal finance reporter Claire Ballentine explains what happens next for Americans with student debt if the court upholds Biden’s plan–or knocks it down.