Student loan forgiveness plan at the hands of Supreme Court
PHILADELPHIA (CBS) -- What's next for an estimated $400 billion student loan forgiveness program in the hands of the Supreme Court? The justices heard several hours of arguments earlier over the Biden Administration plan.
The plan came to a halt after the Biden Administration announced it last August and a decision from the Supreme Court is not expected for several months. Still, borrowers in the Philadelphia area are anxiously waiting to hear what's next.
In Center City Tuesday afternoon, young professionals had lots to say about student loan debt and the possibility of forgiveness.
"I'm in a lot of student debt," Kendall Harris said.
Twenty-seven-year-old Harris is working to become a nurse at the Community College of Philadelphia. She shares she has $30,000 in student loan debt.
"I have to take out more loans to help me afford different things around the school rent and things like that," Harris said.
It's a similar story for 25-year-old Brendan Roach, a St. Joe's grad, who works now in digital marketing.
"I'm trying my best but it's difficult," Roach said. "It's tough."
He's $60,000 in student loan debt and is waiting to hear back after applying for the Biden Administration's Forgiveness Program.
"I'm paying as much as I physically can to student loans," Roach. "It comes out to be $500-$600 a month and that's a lot when you're trying to consider saving up."
Data recently released by the U.S. Department of Education shows more than 1.5 million people living in Pennsylvania signed up for or were automatically eligible for the student loan forgiveness program and more than 740,000 applications are fully approved.
The Biden Administration's initiative could erase up to $20,000 in debt for borrowers, but what happens next is in the hands of the Supreme Court.
"We've gone three-and-a-half years it has been out of sight, out of mind," Fred Amrein.
Amrein with the loan software and training company Pay For Ed based out of Newtown Square was listening to the arguments. His biggest advice to borrowers is to prepare now for whatever decision may come down.
"Make sure you understand what repayment method you will be using because that has to be done before the tax season ends," Amrein.
Again, the court's decision may not happen for several months.
The expert we spoke with says repayments are expected to restart by Sept. 1.
