It’s a waiting game for over 43 million Americans who carry a federal student loan. In October 2022, President Joe Biden officially launched his application process for his federal student debt cancellation program. His plan would cancel $10,000 in federal student debt for individuals with income below $125,000 a year, or households that make less than $250,000 a year. Pell Grant recipients with the same incomes could get $20,000 canceled. According to the Biden Administration, around 20 million borrowers could get their debt erased entirely. Nearly 90% of relief money will go to individuals making less than $75,000 per year, according to the Biden Administration. However his plan was met with lawsuits filed by Republicans and conservative groups in an attempt to block it. The Supreme Court is expected to rule on two cases — as early as June — brought on by six Republican led states and two individual challengers. The first case came from a federal appeals court in St. Louis, Missouri, who put the plan on hold while it considered a challenge from six Republican-led states: Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina.The six states argue the plan would “irreparably harm” their tax revenue and state-run programs that service loans.The second case came after U.S. District Judge Mark Pittman, an appointee of former President Donald Trump, blocked the plan in November, 2022, ruling it overstepped the White House's authority.The lawsuit was brought on by individuals Myra Brown and Alexander Taylor, who have federal student loan debt. They argue they don’t qualify for full student debt relief. Their lawsuit is funded by the conservative group Job Creators Network Foundation. The Biden Administration appealed these cases to the Supreme Court, arguing it has the power to cancel large amounts of federal debt under the Heroes Act, a 2003 law that allows the Secretary of Education to “waive or modify” the terms of federal student loans in times of war or national emergency. It’s now up to the Supreme Court to decide the plan’s legality. Important dates for borrowersFebruary 28th, 2023: Supreme Court scheduled to hear oral arguments May 1, 2023: Consolidation Loan Application Deadline Borrowers who have commercially managed FFEL, Perkins, or Health Education Assistance Loan (HEAL) Program loans should apply for a Direct Consolidation Loan by May 1, 2023 to get the full benefits of the one-time account adjustment. June, 2023: Supreme Court expected to rule on the case June 30, 2023: Payment pause reinstated The Biden Administration has paused payments since the start of the pandemic in March, 2020. The latest date for payments to resume is either 60 days after litigation has been resolved or 60 days after June 30. Spring/Summer 2023: Account adjustment roll out Borrowers who reached 240 or 300 months’ worth of payments for income-driven repayment forgiveness or 120 months of public service loan forgiveness will begin to see their loans forgiven in spring 2023. All other borrowers will see their accounts updated in summer 2023. July 1, 2023: New rules to improve debt-relief programs go into effect The U.S. Department of Education released a series of regulations that will go into effect July 1, 2023. December 31, 2023: Forgiveness Program Application Deadline If the Supreme Court rules the one-time debt relief program is legal, borrowers have until December 31, 2023 to apply. President Biden has taken to social media to reassure borrowers. “Keep the faith,” President Biden said in the pre-recorded video. “We’re on the right side of this. We know the law is on our side. We have a case in the Supreme Court and we believe we’re going to win that case. We’re not going to give up.” Who will pay for it? Some critics worry the forgiveness plan could harm the economy and wonder who will pay for it. The Congressional Budget Office roughly estimates the forgiveness program could cost around $400 billion. The Department of Education estimates the relief plan would cost an average of $30 billion a year over the next decade. Both estimates are subject to change based on unknown assumptions about future economic conditions and how many participate in the forgiveness program. The cost of the forgiveness program would be added into the federal deficit, which measures how much the government exceeds its spending over its revenue.According to a report by Forbes, some are split on how significant of an impact the cost would have on the nation's deficit. Some argue the government has been running on a deficit every year since 2001 without many adverse effects. To lower the deficit, the government either has to spend less or raise taxes – which means the general public could potentially end up paying for it. However, President Biden has previously vowed not to increase income taxes on middle class Americans.Potential outcomesIf the Supreme Court rules the program is legal, the Department of Education can move forward with the program. Borrowers will then be able to apply for the program by December 31, 2023.If the program is overturned, the Biden Administration has already proposed other regulations to make repayments easier. The proposed plan could cut monthly income-based payments in half from 10% to 5% and require repayments from those making more than $30,000 a year. The plan also proposes forgiving debts after 10 years in payments to those who took out $12,000 or less in loans.And while the legal battle plays out, President and Founder of The Institute of Student Loan Advisors Betsey Mayotte says to prepare for repayment either way.“What I’ve been telling people to do is actually pretend they’re paying their loans but instead of actually sending the money to the loan service to put it in some sort of interest bearing account,” Mayotte said.