On Monday December 12th, 2022 the U.S. Supreme Court has agreed to review both challenges to the blanket forgiveness plan that is currently blocked by the lower federal courts. Oral arguments have been scheduled for February 2023 with a ruling expected by June 2023. The U.S. Supreme Court has decided that the 8th Circuit Court of Appeals preliminary injunction blocking the blanket forgiveness program will remain in place while the two cases are being adjudicated by the U.S. Supreme Court.
What does this mean for Hope Credit borrowers?
Due to the fact that the latest Covid-19 extension has an end date of August 29th, 2023 or 60 days after “the Department is permitted to implement the program or the litigation is resolved” per the statement by the U.S. Department of Education, it is likely that this Covid-19 forbearance extension will last until August 29th, 2023. Since the U.S. Supreme Court will hear oral arguments in February and issue a ruling by June 2023, 60 days later after those events transpired will result in a late August date for the end of the latest Covid-19 forbearance and the resumption of student loan payments. In the event that the U.S. Supreme Court rules in favor of the current presidential administration, the earliest we will see the actual forgiveness event of $10,000 or $20,000 affecting student loan borrower balances will be June of 2023.