The Supreme Court is expected to rule this week on President Biden’s student loan forgiveness plan, which would forgive up to $20,000 per borrower.
Repayments already are scheduled to restart in October after a long pandemic-related pause, and the Supreme Court will determine whether borrowers will need to repay their full amounts.
An expert recently told GOBankingRates that about 20% of borrowers have defaulted on loans worth about $124 billion.
“Relieving debt through bankruptcy will be an option that many borrowers may be able to turn to instead,” said Jonathan Petts, CEO of Upsolve, a non-profit organization that helps individuals file bankruptcy without using a private attorney.
A poll by GOBankingRates indicated many people agree with that approach: 57% of the 5,000 or so respondents said they think bankruptcy is an acceptable way to escape student loan debt.
More From GOBankingRates