Yesterday’s Supreme Court decision on student debt relief

Having trouble viewing this email? View it as a Web page.

US Department of Education

July 1, 2023


The Biden-Harris Administration won’t stop fighting for borrowers

Yesterday, the Supreme Court issued a decision invalidating the Biden-Harris Administration’s student debt relief plan following a legal challenge by Republican state officials.

We believe the Supreme Court got it wrong.

President Biden and I recognize how critical student debt relief would have been for tens of millions of Americans and their families, and we understand many borrowers may be wondering how yesterday’s decision affects them.

This decision from the Supreme Court means that the Administration cannot move forward with the one-time student debt relief plan announced last year. The Department had already approved applications for more than 16 million borrowers, and if you are one of those borrowers, you should know that we are unable to provide you with relief under this program due to the Court’s ruling. 

While we disagree with yesterday’s ruling, our Administration will not stop fighting to provide relief to borrowers who need it most, and we will use every tool at our disposal to do so.

Yesterday, our Administration announced three actions to do just that:

  • First, we are taking action aimed at opening an alternative path to debt relief for working and middle-class borrowers. We started the process to provide relief to as many people as we can, as fast as we can, through rulemaking. Under the law, this path will take time, but we are determined to keep fighting for borrowers and we will keep you updated in the months ahead.
  • Second, the Administration is releasing the details of the most affordable repayment plan ever created, called the Saving on a Valuable Education (SAVE) PlanLater this summer, borrowers will start saving money under the new plan, which will cut monthly payments to $0 for millions of borrowers making $32,800 or less ($67,500 for a family of four) and save all other borrowers at least $1,000 per year. Additionally, it will stop runaway interest that leaves borrowers owing more than their initial loan. 
  • Third, to help borrowers back into repayment, we are creating a temporary “on-ramp” to repayment for one year for those struggling to make payments. For borrowers who still cannot make their payments, we are creating a temporary “on-ramp” period that will help borrowers avoid the harshest consequences of missed, partial, or late payments. During that time, missed, partial, or late payments will not lead to negative credit reporting, default, or loans being sent to collection agencies. Borrowers who can make payments should do so, as payments will be due and interest will accrue during this transition period. Additionally, missed payments will not count toward loan forgiveness under any of the income-driven repayment plans or Public Service Loan Forgiveness.

I encourage borrowers to visit to learn more about these actions and to identify a repayment plan that works for them as they prepare for monthly payments due in October 2023.

In addition to these actions, our Administration will continue our important work of making college more affordable and accessible for more American families and making the student loan system more manageable for borrowers. Under President Biden’s leadership, we have taken unprecedented steps toward this goal, including by increasing Pell Grants by $900, which is the largest increase in a decade; fixing a broken Public Service Loan Forgiveness program and discharging $42 billion in debt so public service workers can get the loan relief they were promised; and holding colleges accountable when they take advantage of students and borrowers. 

We will not stop fighting to make sure that student debt is not a barrier for Americans to access college or economic opportunity. We will continue to put the needs of students and borrowers first, help borrowers access the support and resources they need, and make the promise of college a reality for more American families.

We’ll keep fighting for you!


Miguel A. Cardona
Secretary of Education