If Student Loan Forgiveness Is Blocked, Here’s How To Navigate Your Options

President Joe Biden made student loan forgiveness a priority during his term in office, and he ultimately ended up forgiving a total of $188.8 billion in student debt for 5.3 million borrowers.

He achieved this forgiveness through executive actions that:

• Adjusted the payments that counted toward income-driven plans
• Made Public Service Loan Forgiveness easier to qualify for
• Offered relief for borrowers who were scammed by their schools

Biden didn't achieve all he'd hoped for, though. Several of his student debt forgiveness plans were blocked by the Supreme Court. This guide explains some of the debt relief efforts that were halted and offers tips on what to do if your loans remain unforgiven.

Why student loan forgiveness was blocked

Biden had several forgiveness actions blocked during his four-year term in office. Here's what happened with two of his big initiatives.

Forgiveness under the HEROES Act

One of Biden's signature campaign promises was to forgive $10,000 in student loan debt for federal student loan borrowers who earn less than $125,000 per year (or families earning less than $250,000). He authorized a plan to try to forgive that amount for borrowers, and up to $20,000 for borrowers with Pell Grants, before the courts stopped him.

“The main reason the student loan forgiveness program was blocked is because it was introduced through an executive order,” explains George McFarlane, president of 7 Waters Advisors.

“The administration planned to rely on the HEROES Act of 2003, which allows the president to change or eliminate certain student loan provisions in special situations. However, the Supreme Court ruled the Biden administration went beyond the authority granted to the executive branch by the Act,” says McFarlane.

The HEROES Act was passed after the September 11 terrorist attacks and provided the Secretary of Education with the authority to waive or modify provisions of the student loan program in response to national emergencies.

But the Supreme Court ruled Biden's sweeping forgiveness plan went beyond the modest adjustments envisioned by the HEROES Act to create a “novel and fundamentally different loan forgiveness program.” If Congress wanted lawmakers to have this authority, the court held, it would have had to delegate it to them.

The SAVE Plan

Biden tried again with the creation of the Saving on a Valuable Education (SAVE) Plan. This was a new income-driven repayment plan that reduced monthly payments by changing the way discretionary income was calculated. It also waived unpaid interest and allowed debt to be forgiven more quickly than under other income-driven plans.

However, a federal court also prevented the Department of Education from implementing parts of the SAVE Plan. As of January 2025, litigation was still pending to determine if introducing parts of the new plan was within the administration's scope of authority.

With these plans blocked, borrowers have fewer options to have their debt erased. “Now any national federal student debt forgiveness program must be approved by Congress, which is a slow process and unlikely to happen anytime soon,” says McFarlane.

Alternatives to student loan forgiveness

It's important to understand that only Biden's new initiatives were blocked. The court's actions don't affect several existing forgiveness programs.

“Public Service Loan Forgiveness (PSLF) and other income-driven loan forgiveness programs aren't blocked,” explains Jack Wang, a wealth adviser specializing in college financial aid and repayment strategies with Innovative Advisory Group. “Those programs are statutory and would require Congress to pass a law to repeal those programs.”

Public Service Loan Forgiveness allows debt to be forgiven after making 120 qualifying payments while working full-time at an eligible public service job. Existing income-driven programs also provide for forgiveness after 20 or 25 years of qualifying monthly payments, which are set at a percentage of your income.

“Use the loan simulator on the StudentAid.gov website to determine the best repayment plan,” advises Wang. “Additionally, look for potential state programs that may offer loan forgiveness, and don't forget about employer-based programs. While it's not exactly loan forgiveness, many companies now offer loan payment assistance.”

Opportunities for loan forgiveness are more likely to be available for people within professions that serve the common good. “There are loan forgiveness programs for people working in public service, like teachers, lawyers, and medical workers,” McFarlane explains. “With a little research and effort, you can find many ways to reduce, manage, or even completely get rid of your student debt.”

Refinancing federal student loans

Refinancing federal student loans is another way to respond to loan forgiveness being blocked, as it offers a way to at least potentially reduce your interest rate. But this option is not right for many borrowers.

Refinancing is possible only with a private lender, so while you may be able to reduce your rate, you'd also give up federal borrower benefits. If you may take advantage of these benefits later, including income-driven repayment plans, Public Service Loan Forgiveness, or generous forbearance and deferment options, refinancing isn't the right choice.

However, if you know you won't use these special perks for federal loans and you can reduce your rate with student loan refinancing, it may be worth looking into.

Managing federal loans without forgiveness

For borrowers counting on their debt being wiped away through new forgiveness programs, it can be frustrating to begin making payments and planning for student loan payoff again. However, there are debt management techniques that can make coping with your loans easier.

Living on a budget can ensure your payments are affordable, even while you still work toward other financial goals. Budgeting apps and tools can help, or you can use a simple spreadsheet to track spending, identify cuts to make, and prioritize debt payoff.

Setting up automatic payments can also make paying back your lender easier, and can often qualify you for an interest rate discount.

If you're struggling financially, you can also talk with your loan servicer about deferment and forbearance options that help you pause payments. Before you choose either of these options, though, check what your payments would be on an income-driven plan and consider that approach instead to begin working toward loan forgiveness.

Private student loan options if forgiveness is blocked

If you have private student loans, there was never a possibility of loan forgiveness. The government isn't going to eliminate the debt you owe to a private lender.

You can refinance existing private student loans to reduce your rate without giving up any federal borrower benefits, so if you can find a loan at a lower cost, you should take advantage.

Private student loan borrowers can also look into state-based loan repayment programs and loan repayment assistance from their employers.

Current student loan refinance rates

Tips for navigating loan repayment uncertainty

As litigation remains pending and a new administration takes office, there's a lot of uncertainty regarding what will happen with student loan forgiveness programs. As you cope with this confusing time, a few ways to manage loan repayment include:

• Communicate regularly with your loan servicer for updates and guidance: Your servicer can help you understand payment plan options and work with you to pause payments if necessary.
• Avoid default and protect your credit score: Default can damage your credit and have other serious consequences. If you're having a hard time making payments, always reach out to your loan servicer immediately before you fall behind on payments so you can find a better solution.
• Explore career-based repayment assistance: If you work in public service or qualifying fields such as health care or law, you may be able to get help with repayment through your employer. In addition, employers can offer up to $5,250 per employee per year to help repay employee student loans. Reach out to your HR department to find out if this is available where you work.