WASHINGTON, D.C., USA — The Supreme Court is getting ready this week to make a decision on whether or not to allow for student loan forgiveness. It's a controversial decision that impacts many people that still have debt from student loans.
As a 2020 Sacramento State graduate, Quincy Corsey started his post-grad life in debt.
"I think my last cost, I saw was about $30,000 at the time," said Corsey.
Corsey was getting ready to start paying a $30,000 loan, but then the pandemic hit.
"By the time I graduated, I think we've kind of froze everything because of COVID being in full effect at that point, so I haven't had to pay anything like since," he said.
Now, those payments are set to restart this fall, when the pandemic pause comes to an end. Meanwhile at the Supreme Court, it's up to the Justices to decide if some of this debt should be forgiven altogether.
If they agree with President Joe Biden's proposal, up to $10,000 or $20,000 of debt could be forgiven for millions of Americans.
"Should the Supreme Court decide that the Biden administration does not have the unilateral authority to forgive those loans on its own without going through Congress, or without going through some other more democratic sort of conversations," said Sanjay Varshney, professor of Finance at Sacramento State University.
If the Supreme Court allows the loan forgiveness plan, it could eliminate $10,000 in federal student loans for people making less than $125,000 a year. People who relied on Pell Grants, while in college, could see up to $20,000 knocked off their student loans. However, Varshney believes the Supreme Court won't be siding with Biden.
"In my opinion, I think the Supreme Court would, I would be surprised if they actually allowed the Biden Administration to go ahead and forgive the loans and put that huge burden on the taxpayers," he said.
While Corsey is not in a critical position with his finances at the moment, he says he understands how this could negatively impact many people nationwide.
"When I have utility bills or car payments or rent just itself, then you got to add loans onto that as well. You know, even that $20 could probably make a difference to somebody," said Corsey.
The U.S. Department of Education says borrowers will be expected to make payments starting again in October, while the interest on these loans will start accruing again in September. It's a reminder that, if you are concerned about making your payments, now is the time to make a plan and involve a financial adviser.
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