President Biden’s student loan forgiveness program is currently in limbo as the Supreme Court deliberates on its legality.
Biden student debt relief program
The Biden administration’s student debt relief initiative was met with legal challenges as soon as it was announced in August. There have been at least six lawsuits filed against the proposal, each opposing its alleged unlawfulness and estimated cost of $400 billion.
If the program is allowed to go forward, the US Department of Education would cancel up to $10,000 in federal student loan debt for millions of eligible borrowers – up to $20,000 if they received a Pell Grant.
In its favor, the argument goes, the money saved on student loan repayments could help low- to middle-income Millennials afford bigger rentals or a future home.
But legal experts predict that the Supreme Court will strike down the program due to an alleged “violation of the separation of powers.” The court will hear oral arguments in two cases in February and a ruling is anticipated in June.
Student housing shortage
Even if the Supreme Court blocks Biden’s student loan forgiveness program, undergraduates in debt will still need a place to live, and they’re looking for single-family rentals amid an ongoing on-campus housing shortage.
Universities have been unable to accommodate unprecedented numbers of new students this academic year. As a result, the student housing market has performed exceedingly well overall and could even break records by the end of the fourth quarter. Real estate investment experts “feel the tailwinds for student housing” and “project a similar story for 2024-2025.”
By making wise investments to meet this pent-up demand for off-campus single-family rentals, property managers could profit from high student rentals regardless of the Supreme Court's decision. As for students finding themselves between a rock and a hard place, a common solution is to split the rent with one or more roommates. This allows each person to save money by sharing expenses, making it easier for the household to pay rent in full and on time and still have enough left in the budget for the full college experience.
More student housing headlines
Growing demand and construction costs lead universities to get creative – Yield PRO
Student housing players make big push into build-to-rent market – REBusinessOnline
Seniors and college students find benefits in being roommates – The Washington Post