What Will Happen if the Supreme Court Forgives Student Loans?

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More than 40 million Americans could potentially benefit from this through the relief, through the forgiveness of up to $20,000. About 26 million people had already applied for this before the Supreme Court took up the case. It's sort of been frozen since then as we wait to find out what happens with the court arguments. They granted that they make under $125,000 a year or $250,000 for married couples.

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.