Court ruling clears path for Biden administration to proceed with student loan forgiveness plan despite legal challenges

The Biden administration is moving forward with canceling nearly $40 billion in student loan debt for over 800,000 borrowers after a lawsuit seeking to block the relief was dismissed.
The loan forgiveness aims to address long-standing issues in the federal student loan system related to income-driven repayment plans.
Borrowers who have made 20-25 years of qualifying payments on their federal student loans will see the remainder of their debt discharged.
The Biden administration has also proposed a new income-driven repayment plan called SAVE to provide more affordable options.
Additional legal challenges remain, but the dismissal of this lawsuit allows the administration to continue implementing its student debt relief policies.