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The loan forgiveness comes after past mishandling of income-driven repayment plans, which were designed for low-income borrowers. The move will erase $39 billion in federal student loan debt.
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In the wake of Friday's Supreme Court decision striking down Biden's relief plan, borrowers lament the path forward.
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The court has struck down President Biden's plan to discharge federal student loan debt for tens of millions of Americans. Here are five takeaways for borrowers and the country.
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The court unanimously dismissed on standing grounds a challenge to President Biden's groundbreaking plan to forgive some or all federal student loan debt for tens of millions of Americans.
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With President Biden pledging a veto, the resolution amounts to a mostly symbolic show of congressional disapproval on a plan to cancel up to $20,000 in federal student loan debt.
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If it passes, the proposed debt deal would set the date for federal student loan repayments to resume. The pause's end will affect some 43 million borrowers, but, in effect, it's not a big change.
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The department says Florida Career College broke the rules to help students qualify for federal student loans, many of whom later dropped out with steep debts and no certificate to show for it.
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Langston University will use almost $4.6 million of federal funds to cancel out outstanding balances its students incurred during the pandemic.
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A majority of the court's conservatives indicating great skepticism over the president's loan-forgiveness plan.
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On Tuesday, the justices will hear expedited arguments in a challenge to the Biden plan brought by six states — Missouri, Nebraska, Iowa, Arkansas, Kansas and South Carolina.