LANSING, Mich. (NewsNation) — The Supreme Court is expected to hear oral arguments at the end of the month ahead of President Joe Biden’s plan to forgive up to $20,000 in debt for federal student loan borrowers.
Biden’s plan has been met with varying options, but the majority of borrowers’ debt is standing between them and their financial well-being, they say.
About 53% of federal student loan borrowers say their financial stability relies on their loans being forgiven, according to a recent Credit Karma survey of 1,009 adults in the U.S.
Inflation is slowly declining, but the summer looms, and with it comes the return of student loan payments on or around June 30.
It has been nearly three years since federal student loan payments were halted due to the pandemic forbearance that began under the Donald Trump administration, but the return of payments won’t be easy for borrowers who are already struggling.
While the payment pause might have helped borrowers become more financially stable, 56% say their financial stability is dependent on not having to make payments as the forbearance period remains intact, according to the survey conducted by Qualtrics on behalf of Credit Karma.
However, nearly 70% of respondents say their finances have stayed the same or declined since last year, Credit Karma reported.
Meanwhile, a recent Gallup Poll found similar results: Half of Americans report their finances are worse now compared to a year ago.