Isabella Johnson, a psychologist in Arkansas, has a lot on her plate. She helps her son, who has some pre-existing health issues, pay his debt on both a bachelor’s and master’s degree. In August 2022, President Joe Biden announced his plan to forgive some student debt. For Johnson, that meant she could move forward with other large expenses. She just bought a house two weeks ago.
A series of rulings last week by the Supreme Court striking down the Biden administration’s student loan forgiveness programme has changed her situation. After the ruling, the mortgage lender backed out because now her income-to-debt ratio – which compares how much she owes each month with how much she earns – no longer works for them.
