Sign up to our email list for updates on the newest articles and courses!

We respect your email privacy

“You can get past the dead end. You can break through the ceiling. I did and so have countless others.”

Finance Tip Friday #72: Student Loan Forgiveness Update


If you’ve been wondering when President Biden’s promise of student loan forgiveness is going to materialize, don’t hold your breath. Since his big announcement back in 2022, when he said that up to $20,000 per qualified borrower would be forgiven, the program has more or less become stalled.

Why? Because of significant legal challenges. Two cases, in particular, were heard by the Supreme Court on February 28th:

  • Biden v. Nebraska. This case was brought forward by six Republican-led states: Nebraska, Missouri, Arkansas, Iowa, Kansas, and South Carolina. Their main argument is that student loan forgiveness would cause financial harm to the state-sponsored companies responsible for servicing federal student loans (focusing mainly on Missouri’s servicer MOHELA). Defense for the White House argued that the case had no ground since the state of Missouri wouldn’t be harmed and that MOHELA would have to be the one to file suit. 
  • Department of Education v. Brown. This case comes from two plaintiffs in Texas: Alexander Taylor and Myra Brown. Both feel that student loan forgiveness unjustly excludes them from the relief they deserve. Defense for the White House again argued that neither plaintiff would suffer any actual financial harm if the program were to move forward.

Unfortunately, the Supreme Court will not make an official ruling on this hearing until at least the end of June. So it will be at least several more months until we know what comes next. 

If you’re an already established nurse practitioner earning over the program’s limit of $125,000 ($250,000 for joint filers), then you may not be very personally vested in the outcome. However, please be mindful that many professionals in this field are – especially those who are just starting out or who haven’t begun their own practice yet. For these individuals, having up to $20,000 wiped away would be life-changing.

Even if the Supreme Court strikes down Biden’s plan, the White House isn’t entirely out of tricks. Back in January, the Department of Education also announced it would update the REPAYE plan – one of its IDR (income-driven repayment) plans.

This updated REPAYE program will be a huge improvement over the former IDR plans because it would significantly cut down most borrowers’ payments by hundreds of dollars. For some, it would also give them the chance to have any remaining debt erased after ten years of making payments. 

Coincidentally, official details of the updated REPAYE plan have not yet been finalized and probably won’t be until we know the outcome of the Supreme Court’s decision on student loan forgiveness.

6 Responses

  1. I find this message misleading and uninformed. ”having up to $20,000 ‘wiped away’ would be life-changing”. These loans AREN’T ”wiped away”. I mean, where do you think this debt goes? Does it simply vanish, or will others be now be footing the bill? Obviously it is not ”wiped away”, it will be spread out amongst all of us in one way or another–to include the underprivileged that never had the opportunity to go to college at all, let alone earn a masters/doctoral degree in a field that certainly yields plenty of good paying jobs to pay back those loans.
    We should be much more worried about the high cost of obtaining advanced degrees rather than relieving debt of a few. How does this Loan Forgiveness Plan help our advance practitioners of the future? Oh yes, it doesn’t! I am in 100% AGAINST this loan repayment plan, especially for those with advanced degrees. Obviously my views are not consistent with this company and i really regret when such companies breach into politics. I will be removing my self as a member of this group today.

  2. I think the a better answer to this would be to nor forgive the debt, but stop the interest. Let the students pay back the debt they borrowed, then there is no money lost, except the money that pays for large CEO salaries and bonuses. Is that a simple overview yes, but I think if some of these, large servicing loan agents, can afford football stadiums etc. they obviously could afford an interest holiday.

    1. I agree, forgiving the interest would be a more appropriate step. Completely wiping away student debt is not sustainable for our country and its debts… $30 trillion already is not sustainable.

  3. I am mystified by NPs, in particular, are in so much debt from going to NP school. I worked during and received scholarships for my diploma RN program and did not graduate with debt. I continued to work and save for my BSN program and paid cash with a little help from my employer’s limited tuition assistance program. I worked and saved and completed my DNP program without debt. I do not live above my means and I am blessed with good health and a healthy family. This is not a criticism of how others spend and live, but maybe useful advice. Taking time to work and save between educational levels also gives you a chance to gain experience and expertise that will benefit you in the next phase of your career. JMHO

    1. I totally agree Cathy. I graduated with about $70k in debt when I was all said and done, but that was for 2 bachelors degrees and my MSN. So really, NOT that bad. I paid it off as soon as I could, so this student loan forgiveness is not of my concern. Unfortunately, LOTS of NPs graduate with $200k+ in debt, which is just mind blowing to me.

Leave a Reply

Your email address will not be published. Required fields are marked *

buy prednisone online buy prednisone 20mg

Have Questions?

Message Justin

drop us a line