LOCALIZE IT: Borrowers await verdict on nixing student loans

Supreme Court Student Loans Explainer (Copyright 2022 The Associated Press. All rights reserved.)

EDITORS/NEWS DIRECTORS:

President Joe Biden’s student debt cancellation plan is having its day in court Tuesday.

The U.S. Supreme Court is hearing arguments in cases challenging the forgiveness of up to $20,000 in federal student debt per borrower.

Biden sought to fulfill a campaign promise when he announced the long-awaited plan in August. Supporters say the relief will boost the economy and narrow the racial wealth gap, but conservative opponents have objected to the cost and called it an insult to Americans who repaid their debt or didn't go to college.

The court challenges focus on whether Biden had legal authority to wipe out the debt. The arguments — and the fate of the forgiveness plan — will be followed closely by borrowers around the country.

Biden’s plan makes 43 million borrowers eligible for some debt forgiveness, with 20 million who could get their debt erased entirely, according to the administration.

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Supreme Court weighs Biden student loan plan worth billions

ADD LOCAL CONTEXT

Data released in February by the U.S. Education Department breaks down how many borrowers applied for the relief in each of the nation’s congressional districts. In each district, at least 30% of eligible borrowers were approved for the relief before the plan was blocked. At least half of eligible borrowers either applied or were automatically found to be eligible for the cancellation, the data show.

To find the data for your district, visit https://www.ed.gov/coronavirus and scroll to the “Postsecondary Education” category. The first link should be “Student Debt Relief Application Data by Congressional District,” which downloads a spreadsheet with the new data.

FINDING BORROWERS

Who are these borrowers? There are several organizations that could help you find people with student debt in your area to ask what Biden’s plan could mean for them, and how the court-ordered pause in the rollout is affecting their financial planning.

— The National Association for College Admission Counseling is a membership group for college counselors. The group has a directory of college access organizations in each state. Those groups often work individually with students and can help find people who are still in college or who have graduated with debt. https://casp.nacacnet.org/search?title=&field_city_tid=All&field_state_tid=80

— Veterans Education Success is an advocacy group that helps military veterans pursue higher education and avoid unmanageable student debt. Press contact: Jake Fisher, jake.fisher@wardcirclestrategies.com

— The Student Borrower Protection Center is a consumer advocacy group that supports debt cancellation and works with governments, advocacy groups and individuals to protect borrowers. Press contact: Jackie Filson, jackie@protectborrowers.com

— Young Invincibles is a student-founded nonprofit that advocated for debt cancellation. Press contact: Juan Ramiro Sarmiento JuanRamiro.Sarmiento@younginvincibles.org.

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Localize It is an occasional feature produced by The Associated Press for its customers’ use. Questions can be directed to Katie Oyan at koyan@ap.org.