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Originally Published: Jan 09, 2023
Originally Published: Jan 09, 2023 Last Updated: Jan 10, 2023 10 min read
Students walk and talk using mobile devices in university

It may have only just started, but 2023 is already shaping up to be a significant year for the nation's roughly 44 million student loan borrowers.

The Supreme Court is slated to weigh in on President Joe Biden’s forgiveness plan, federal payments are set to resume after more than three years, and several new initiatives aimed at improving borrowers' repayment experiences are taking effect.

If you have federal student loans, here are five things you can expect in 2023 (and how to prepare).

1. Biden’s one-time student loan forgiveness plan will get a ruling

What's happening: Borrowers who applied and were approved for Biden's one-time student loan relief plan are stuck in limbo, waiting to see where the Supreme Court lands on whether the administration has the legal authority to unilaterally wipe out more than $400 billion of debt.

“Debt cancellation is the big open question [for this year],” Michele Shepard, senior director of college affordability at The Institute for College Access & Success (TICAS), says. “There’s nothing we can say about that right now with certainty.”

Biden’s plan, if cleared by the Supreme Court, would cancel up to $10,000 of federal student debt for borrowers earning less than $125,000. Borrowers who received a need-based Pell Grant during their time in college would get as much as $20,000 canceled. About 26 million borrowers applied for forgiveness, with 16 million of them approved, before the administration had to stop the program in light of the legal challenges. In all, more than 40 million borrowers are eligible for the relief.