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Short sellers won big in 2022 as the broader market declined, tallying $300 billion in mark-to-market profits on average short interest of $973 billion, according to S3 Partners.
Investors shorted less in 2022 than 2021.

Traders on the floor of the NYSE, June 24, 2022.
Source: NYSE

Traders who shorted stocks won big in 2022, according to S3 Partners.
Shorted stocks had a return of 30.8% in 2022, said Ihor Dusaniwsky, the firm’s managing director of predictive analytics. That means short sellers outperformed the broader market, which suffered its biggest losses since 2008. The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite lost 8.8%, 19.4% and 33.1%, respectively, last year.

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U.S. short sellers tallied $300 billion in mark-to-market profits on average short interest of $973 billion, Dusaniwsky wrote.
But even with the huge win in 2022, short sellers still lag in recent history. In the past five years, an average annual return for short sellers was a loss of 4.4% while the Dow gained 6.8%, the S&P 500 rose 9.3% and the Nasdaq climbed 12.5%.

How short holdings performed over the last 5 years

Dow return (%)
S&P 500 return (%)
Nasdaq return (%)
Short return (%)

2018
-5.6
-6.2
-4.7
8.9

2019
22.3
28.9
35.2
-22.1

2020
7.3
16.3
43.6
-27.1

2021
18.7
26.9
21.4
-12.6

2022
-8.9
-19.4
-33.1
30.8

5-year average
6.8
9.3
12.5
-4.4

Source: S3 Research

When an investor sells a stock “short” they borrow shares from a broker and sell them in hopes of buying the stock back later at a lower price. It’s a tactic that does best when the broader market is hurting. Short seller returns came in below the major indexes when the market gained value in 2019 through 2021, but beat the averages when they ended the year down in 2018.
It’s worth noting that the total amount shorted last year was below 2021, when the $1 trillion threshold was broken, but higher than in 2018 through 2020.
Short sellers still needed to be good stock pickers in 2022 as different sectors and individual holdings could produce vastly different results, Dusaniwsky said.

For instance, the best sector to short last year was beat down communication services stocks, which produced a return on shorted holdings of 56.7%. Energy was the worst, and posted a 28% loss on shorted holdings, S3 Partners said.
Short- and long-term performance are typically inversed. That’s because investors usually move short on holdings that they expect to lose value, so energy — which was the only winning S&P 500 sector in 2022 — would not be a target for shorting as investors watched share values rise despite the broader market’s decline.
And choosing sector orientation is “only half the battle” given the variety of stocks within each one. Within consumer staples, for example, Beyond Meat had the biggest return on short selling at 128.2%. French fry producer Lamb Weston was the least profitable in its sector, and lost 43.9%.
Carvana, which was beat down as used car demand slid, had the best short performance of all stocks with at least $100 million in short interest, recording a 377.6% gain.
On the flip side, Madrigal Pharma was the worst to short. Bets against the company lost 345.4%. The stock rallied in December on the back of well-received drug trial data.

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Even if you aren’t subject to the “use it or lose it” approach used by 23% of employers when it comes to contributions to health care FSAs, be sure you know your company’s rules.
A reprieve does not necessarily mean you won’t end up forfeiting 2022 money, according to Employee Benefit Research Institute.
If you need to find ways to spend remaining funds, it may be easier to do so because the list of eligible FSA items is longer than it used to be.

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Collectively, workers may have forfeited an estimated $1 billion in their health-care flexible spending accounts last year.
Yet depending on your employer’s rules for those FSAs, which let workers save pre-tax money to pay for qualifying health expenses, you may have sidestepped being part of that cohort — at least for now. 

While 23% of companies that offer health-care FSAs stick to the Dec. 31 “use it or lose it” approach, the remainder either offer a grace period to spend leftover funds or let you carry over a limited amount into the next year, according to the Employee Benefit Research Institute.
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However, if you’re allowed to carry over 2022 funds, the limit is $570. And if you get a grace period, it can be up to 2.5 months, which would mean a new deadline of March 15 to spend the money.
Nevertheless, some employees end up losing out despite those reprieves.
Among workers who are allowed to carry over money, 49% end up forfeiting all or part of it, according to the institute. For those with a grace period, that share is 37%. Additionally, 48% with a traditional Dec. 31 deadline forfeit money, as well.

Last year, individuals could have contributed as much as $2,850 to their health-care FSA. The limit for 2023 is $3,050.

Look into your workplace FSA rules

It’s common for workers to not know what their employer’s FSA rules are. If you’re uncertain, reach out to your company’s human resources department, said Jake Spiegel, research associate at the institute.
Alternatively, you can check your online FSA portal (if your company has one) for information. There also should be a phone number (for customer service) on the back of your FSA debit card that you can call.

Ways to spend down your FSA balance

If you discover you’ve only got a couple of months to spend remaining 2022 funds and are unsure how to use it, be aware that the list of eligible expenses that qualify for FSA money is longer than it once was, due to congressional action in 2020.

Think about what sorts of over-the-counter medicines or other things you could pick up that you’d buy anyway.”

Jake Spiegel
Research associate at the Employee Benefit Research Institute

For starters, over-the-counter drugs no longer need a prescription to qualify. This includes things such as cold medicines, anti-inflammatories and allergy medicine.
Additionally, menstrual care products are now eligible, as are items that have become pertinent during the pandemic: at-home Covid tests, masks, hand sanitizer and other personal protection equipment used to combat the virus.
“Think about what sorts of over-the-counter medicines or other things you could pick up that you’d buy anyway,” Spiegel said. “That can help people draw down some of their balance.”

Other products that qualify include sunscreen, thermometers, eye-care products, baby monitors and pregnancy tests. FSAstore.com has a list of eligible items if you are uncertain whether something would qualify.
Be aware that the IRS does not allow stockpiling, which generally means you can’t buy more of a product at one time than you can use in that tax year. The specifics, though, are determined by FSA administrators.

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If you are behind in repaying your federal student loans and you collect Social Security benefits, part of your monthly checks could be withheld.
The reduction is about $2,500 annually on average, a new report from the Center for Retirement Research at Boston College found.

A Social Security Administration office in San Francisco.
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If you are delinquent on federal student loans and collect Social Security benefits, your monthly checks could be reduced.
A pandemic pause has put all garnishments on hold for now.

But when collections are in effect, the reduction in annual Social Security benefits is about $2,500 on average, based on 2019 data, according to new research from the Center for Retirement Research at Boston College.
That typically amounts to 4% to 6% of household income, a significant amount that could pay off the average person’s credit card balance, the research found.
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The number of Social Security beneficiaries who find themselves in this situation is small, based on delinquency rates. Less than 5% of beneficiaries currently have student loan debt.
But those balances are expected to be “substantially” higher for future beneficiaries, who are also expected to have higher delinquency rates, according to the research.

“Among younger cohorts, the share of people holding student loans are much larger,” said Siyan Liu, research economist at the Center for Retirement Research.
“If that continues on into retirement, then a much larger proportion of them, if they have trouble making payments, could be facing benefit upsets,” she said.

Social Security benefits are typically subject to partial withholdings after prolonged federal student loan delinquencies.
The Social Security withholding amount for student loan debtors is typically either 15% of the total monthly benefit or the amount by which the benefit exceeds $750 per month — whichever is less.
“It has been a real issue for people who are on a fixed income and have no other support,” said Adam Minsky, a Boston-based lawyer specializing in student loan law.
“That 15% really can make the difference between being able to pay for rent or food or medication,” Minsky said.
Social Security benefit withholding typically happens after 425 days of delinquency has passed and a loan holder fails to restart repayment.
The money withheld is applied to the federal loan balances.

How much money is at stake

About 2.7 million consumers ages 62 and up owed more than $107.3 billion in federal loans as of September, according to the U.S. Department of Education.
The average annual Social Security benefit at risk due to student loan delinquency is expected to increase to $2,594 for future beneficiaries — those currently ages 35 to 61 — up from $2,299 for current beneficiaries ages 62 and up, based on 2019 data, according to the Center for Retirement Research.
However, the share of household income at risk is expected to decline to 4.4% for future beneficiaries, down from 6.1% for current beneficiaries.

Today’s Social Security beneficiaries who are behind on federal student loans are not subject to benefit withholdings, as those collections have been suspended as part of the federal student loan payment pause that has been in effect since March 2020, Minsky noted.
“No one is having their Social Security checks garnished right now,” Minsky said.
President Joe Biden’s Fresh Start initiative is slated to give borrowers a full year after the payment pause ends to try to get out of default before collections on benefits resume, he noted.

How policy may influence debts

Biden has proposed broad student loan forgiveness of up to $10,000 for federal student loans, or up to $20,000 for Pell grant recipients.
The fate of the plan is now in the hands of the U.S. Supreme Court, which is scheduled to consider it in February.
If the plan goes through, it would result in an average forgiveness of $12,000 per borrower, according to the Center for Retirement Research.
Both Black and Hispanic households, who are more likely to have Pell grants, would have their share of debt holders cut in half, the research found. The share of Black borrowers with debt would be reduced to 12% from 22%.
Yet future beneficiaries in those groups are currently expected to see their delinquency rates rise, according to the Center for Retirement Research.

The plan would also have a dramatic impact on delinquency rates, as delinquent borrowers could have their entire balances forgiven.
While Black borrowers stand to see the largest decrease in delinquency rates, Hispanic borrowers would see the largest relative decrease, the research found.
Because Biden’s plan would reduce both debt and delinquency for future retirees, it would also shrink racial inequality, the Center for Retirement Research said.
Some Democratic lawmakers are also eyeing another way of providing relief.

In December, four House Democrats introduced a bill, the Student Loan Relief for Medicare and Social Security Recipients Act, that would eliminate student loan debt balances held for more than 20 years by Medicare and Social Security disability insurance beneficiaries.
It remains to be seen whether the proposal may gain traction on Capitol Hill.
“We should eliminate as much student debt as we can for everyone, but especially for those who have spent decades of their lives working to pay it off,” Rep. Adam Schiff, D-Calif., said in a statement. “This bill would ensure that instead of triaging their benefits, seniors and disabled individuals can focus more on their health, their families, and thriving in their best years.”

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The deadline for fourth-quarter estimated tax payments for 2022 is Jan. 17, applying to income from self-employment, investments, gig economy work, small businesses and more.
You can avoid a penalty by paying the lesser of 90% of taxes for 2022 or 100% of 2021 levies if your adjusted gross income is less than $150,000.

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If you didn’t pay enough taxes in 2022, there’s still time to avoid a “surprise tax bill” and bypass extra penalties, according to the IRS. 
The deadline for fourth-quarter estimated tax payments for 2022 is Jan. 17, which applies to income from self-employment, investments, gig economy work and more.

“It’s where you can make yourself whole at the end of the year,” said certified financial planner John Chichester Jr., founder and CEO of Chichester Financial Group in Phoenix.
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If you’re not withholding taxes from your income, you typically must make payments four times per year. Otherwise, you may owe interest and a late-payment penalty of 0.5% of your unpaid balance per month or partial month, up to 25%. 
The IRS says Direct Pay is the “fastest and easiest” way to make payments, with online scheduling options before the Jan. 17 deadline.  
You can also make payments through your IRS online account, which provides access to payment history, or digitally through the Electronic Federal Tax Payment System. You can see other options through the IRS payments website. 

There’s a ‘safe harbor’ to avoid federal tax penalties

One key thing to know: Chichester said there’s a “safe harbor” to avoid underpayment penalties for your yearly federal taxes.
You won’t owe federal penalties if you’ve paid, over the course of 2022 and through the Jan. 17 deadline, the lesser of 90% of your 2022 taxes or 100% of your 2021 bill if your adjusted gross income is $150,000 or less. (Opt for the latter strategy, and you’ll need 110% of your 2021 bill if you earn more than $150,000.)
However, the safe harbor isn’t a guarantee you won’t owe more federal taxes for 2022, Chichester said. He urges clients to set aside at least 20% of earnings to cover federal taxes, plus a smaller percentage for state taxes, depending on where they live.

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Your Health, Your Money

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Personal Finance

Patients with long Covid may experience disruptions to their health insurance coverage if they lose their job.
Fortunately, they have other options to turn to, which may include Medicare and Medicaid.

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Navigating the health insurance system is often difficult and overwhelming, even in the best of times. For patients with long Covid, a relatively new condition that frequently leaves patients with a lengthy and unpredictable list of debilitating symptoms, it can be especially nightmarish.
“Even if you remain on the same [health insurance] plan you had before Covid, you will probably utilize the health-care system more, whether it be more office visits, more prescription medications or even more medical devices,” said Caitlin Donovan, a spokesperson for the National Patient Advocate Foundation.

Indeed, nearly half of people with long Covid reported increased medical expenses, according to a recent survey conducted by the Patient Advocate Foundation. The nonprofit, NPAF’s sister organization, polled 64 people with the condition between 2020 and 2022. Meanwhile, 13% of respondents in the PAF survey said they’d experienced changes to their health-care coverage as a result of long Covid.

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Here’s a look at more stories on the complexities and implications of long Covid:

In all, one Harvard University researcher estimated that long Covid could leave patients with an extra $9,000 a year in medical expenses.
Here’s what you need to know about navigating health insurance with the condition.

Unemployed long Covid patients have coverage options

Between 2 million and 4 million full-time workers are out of the labor force due to long Covid, according to recent research from the Brookings Institution.
If long Covid causes you to lose or leave your job and, therefore, your employer-sponsored health insurance, don’t panic. You may have several options for getting new coverage, said Karen Pollitz, a senior fellow at the Kaiser Family Foundation.

There are resources you can turn to for help deciding the best route to getting reinsured. If you have a diagnosed condition, including long Covid, you may be able to get support deciding on and enrolling in a plan with the Patient Advocate Foundation.
At no charge, you can also consult with a local health-care “navigator,” an expert who can help you search insurance plans and enroll in one on the Affordable Care Act’s marketplace.
1. Join a family member’s plan
Losing your job-based coverage triggers a 30-day special enrollment opportunity to join a family member’s plan, Pollitz said. You might consider getting covered through your spouse’s employer or a parent’s, if you’re under 26.
2. Extend workplace coverage
If your former company had at least 20 employees, you might also have the option to get insured through the Consolidated Omnibus Budget Reconciliation Act, or COBRA, Pollitz said.
COBRA typically allows people who leave a company to remain on their workplace insurance plan for up to 18 months — although it’s not cheap. (It tends to be pricey because you pick up the part of the health insurance tab your former company was covering.)
There are exceptions that can stretch coverage. If the Social Security Administration considers you disabled (long Covid can qualify as a disability), you may be able to stay on COBRA for an additional 11 months. Those who qualify for Medicare around the time they part with a company may also qualify for an extension beyond the typical 18 months.
3. See if you qualify for Medicaid
If your job loss has left your household with a substantially lower income, you may be able to enroll in Medicaid, Pollitz said. “This is comprehensive public coverage with no monthly premium,” she said. Eligibility is based on your current income, Pollitz added, and you can sign up year-round.
If you’re receiving disability benefits from a private insurer and/or through your employer, that income won’t necessarily disqualify you for Medicaid; you’ll want to check whether or not the payments are subject to taxes.
“If the benefits are taxable as income, then they would count toward Medicaid eligibility,” Pollitz said.

Even if you remain on the same plan you had before Covid, you will probably utilize the health-care system more.

Caitlin Donovan
spokesperson at the Patient Advocate Foundation

4. Sign up for a plan on the public exchange
Long Covid patients who have recently become unemployed may also be able to get health insurance on the Affordable Care Act’s marketplace. Losing your job triggers a 60-day enrollment period on the marketplace, where many of the plans are subsidized.
“Fortunately, ACA insurers are not allowed to discriminate based on health,” said Jonathan Gruber, a professor at the Massachusetts Institute of Technology and a former director of the health-care program at the National Bureau of Economic Research. “So having long Covid will not raise costs.”
5. Explore Medicare eligibility
Lastly, if you end up qualifying for Social Security Disability Insurance because of your long Covid, you may become eligible for Medicare, even if you’re younger than 65, after a two-year waiting period.
If you’re already 65 or older when you lose your job, Medicare may be your best option for coverage, Donovan said.
“Medicare comes with the benefit of an almost universal network, in contrast to marketplace plans,” Donovan said, adding that delaying enrollment once you’re eligible can also subject you to financial penalties.

Employed patients ought to review benefits

If your case of long Covid hasn’t disrupted your employment and you remain insured at work, you’ll want to make sure you’re signed up in a robust plan, Donovan said.
A more comprehensive workplace plan typically comes with a higher monthly premium but lower out-of-pocket expenses and more options, Donovan said. It’s especially important, she added, that you get the most generous prescription drug plan, if your company offers a variety of them.
Educate yourself as much as you can about your coverage, Donovan said, including information on providers and treatments that you might formerly not have considered.
Long Covid patients, for example, often seek physical therapy and mental health services, she said.
You’ll also want to make sure you’re up to date on your employer’s paid time off and sick days policy.

Clinical trials are ‘worth investigating’

Clinical trials, many of which are covered by health insurance plans, can be a great option for long Covid patients, Donovan said.
“Long Covid is still new, so anyone who participates in a clinical trial will be contributing to our understanding of the condition and advancing our ability to treat it,” she said.

And, she added, “clinical trial participants may have access to the newest safe and effective treatments.”
Trials take place all over the country, and some are even virtual, Donovan said. People can find out more at clinicaltrials.gov and by talking to their doctor.
Keep in mind, Donovan said, that your health insurance plan may require any trials be in-network and it may only cover certain costs of the experience.
Still, Donovan said, “it’s worth investigating.”
Meanwhile, those looking to save money on prescription costs should ask about generic options, which tend to be cheaper than the brand-name medicines.
In addition, Donovan said, programs like GoodRx may help you cut costs on certain drugs. And the Patient Advocate Foundation has a charitable copay program to which those struggling financially can apply.
Finally, Donovan said, with so much still unknown about long Covid, insurers may be more likely to reject coverage for a particular treatment or service. Patients should fight back, she said.
“Don’t lose hope,” Donovan said. “Go through the appeal process: Over 40% of denials are overturned in the patient’s favor.” More

Home maintenance and repair costs can end up costing thousands of dollars a year, research shows.
Consider putting at least 1% of your home’s value aside each year to cover those expenses.
Taking care of your home — whether through regular maintenance or small repairs — can help avoid more expensive fixes.

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Some expenses that go with homeownership can often be unpredictable — and costly.
Last year, homeowners spent an average of $6,000 on maintenance and repairs, according to a recent report from insurance firm Hippo. A separate study from home services website Angi that measured similar 2022 costs shows maintenance averaged $2,467 and home emergency spending — i.e., an unexpected repair — was $1,953 on average ($4,420 altogether).

Regardless of what you may fork over for those expenses, they have the potential to upend a household’s budget when unexpected. While some of the costs may be unpredictable, there are things you can do to mitigate their sting, experts say.
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Aim to set aside least 1% of your home’s value

For starters, the general advice is to annually set aside at least 1% to 3% of your home’s purchase price to cover a combination of home improvements, maintenance and repairs, said Angie Hicks, chief customer officer of Angi.
“That’s for all three buckets,” Hicks said. “For a $400,000 home, the [$4,420] in maintenance and emergency spending in our report is closer to 1%. You want to make sure you have that 1% covered.”
The median selling price for a home stood at $393,756 as of November, according to Redfin. (One percent of that amount is $3,937.)

Maintenance costs may reduce repair expenses

While it’s wise to have money set aside, maintenance can help reduce what you spend on unexpected repairs, Hicks said.
“We’re seeing an increased focus on maintenance activities, which is good to see,” Hicks said. “When there are inflationary pressures, people … don’t want to be surprised, so they start doing more maintenance-type projects that they might have previously skipped over.”
And some things — such as remembering to regularly replace your furnace filter to help keep the system run optimally — can often be done by the homeowner.

In the Hippo report, which was based on a survey of about 1,000 homeowners, 65% of respondents who had something go wrong in their house last year said they could have prevented it with proactive maintenance.
By way of example: It’s worth doing a visual inspection of your roof a couple times a year to make sure you don’t see any missing or curled shingles that warrant a repair before the problem worsens and you’re facing extensive water damage, Hicks said.
“You don’t want a leak,” Hicks said. “Water is the worst enemy of your house.”
While the specifics of a necessary roof repair determine the cost, the average is $1,000, according to thisoldhouse.com. That compares to an average $3,342 shelled out for water-damage repairs, according to Angi.

Monitor and maintain your home’s systems

It’s worth getting your main systems, such as heating and cooling, serviced on a regular basis, said Courtney Klosterman, home insights expert at Hippo.
Also, “get to know the critical systems in your home — major appliances, plumbing, electrical, etc. — so you can monitor them for wear and tear over time,” Klosterman said.

You may want to keep track of how long major appliances in your home will last. For example, furnaces generally last 15 to 20 years if well-maintained, according to home appliances maker Carrier. If yours is closing in on that age, you’ll know to be financially ready to replace or repair it instead of being surprised by its failure.
Unexpected house-related costs have a way of weighing more heavily on homeowners, Klosterman said.
“When one thing goes wrong, it brings a wave of anxiety and dread about what could go wrong next,” she said. “Taking a proactive approach to home care can save not just money but time and anxiety, as well.”

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As the Federal Reserve remains committed to raising interest rates to combat inflation, credit card rates will hit fresh highs in the year ahead.
Soon, annual percentage rates will surpass 20%, Bankrate’s chief financial analyst said.
Here’s the best way to pay down credit card debt before rates climb any higher.

Credit card interest rates reached record highs last year and there is still more to come in 2023, according to Greg McBride, chief financial analyst at Bankrate.com.
Credit card rates are now more than 19%, on average — an all-time high — after rising at the steepest annual pace ever, in step with the Federal Reserve’s interest rate hikes to combat inflation.

Along with the Fed’s commitment to keep raising its benchmark until more progress is made, credit card annual percentage rates will keep climbing, as well. 
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With more rate hikes on the horizon, average credit card APRs could be as high as 20.5% by the end of the year, a new record, McBride said.
Since most credit cards have a variable rate, there’s a direct connection to the Fed’s benchmark. As the federal funds rate rises, the prime rate does, too, and credit card rates follow suit. Cardholders usually see the impact within a billing cycle or two.
“The important takeaway for current cardholders is that another 1 percentage point in rate hikes by the Fed means your rate will move up by 1 percentage point,” McBride said.

A 0% balance transfer card can help

“The urgency remains — pay down credit card debt aggressively,” McBride advised.
Turbocharge those efforts with a 0% balance transfer card and refrain from putting additional purchases on credit cards unless you can pay the balance in full at the end of the month, he said.   
Cards offering 15, 18 and even 21 months with no interest on transferred balances “are still in abundance,” he added.
“This gives you a tailwind to get the debt paid off and shields you from the effect of additional rate hikes still to come.”

“If you don’t take steps to knock that debt down, it will only get more expensive,” said Matt Schulz, LendingTree’s chief credit analyst.
Making the best use of a balance transfer boils down to making those payments on time and aggressively paying down the balance during the introductory period, according to Schulz.
If you don’t pay the balance off, the remaining balance will have a higher APR applied to it, which is generally about 23%, on average, in line with the rates for new credit.
Further, there can be limits on how much you can transfer and fees attached. Most cards have a one-time balance transfer fee, usually around 3% to 5% of the tab, Schulz said.
And one late payment can negate your no-interest offer.
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The Biden administration filed a legal brief with the U.S. Supreme Court defending its plan to cancel hundreds of billions of dollars in student debt.
The lawyers argued that the legal challenges to the plan were brought by parties that failed to show harm from the policy.
The brief also denied that the Biden administration was overstepping its authority.

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The Biden administration filed a legal brief with the U.S. Supreme Court defending its plan to cancel hundreds of billions of dollars in student debt.
In its arguments to the highest court submitted late Wednesday, lawyers for the U.S. Department of Education and U.S. Department of Justice argued that the challenges to the plan were brought by parties that failed to show harm from the policy, which is typically a requirement to establish so-called legal standing.

The attorneys also denied the claim that the Biden administration was overstepping its authority, laying out the White House’s argument that it is acting within the law. It points to the fact that the Heroes Act of 2003 grants the U.S. secretary of education the authority to waive regulations related to student loans during national emergencies.
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The country has been operating under an emergency declaration due to Covid since March 2020.
“We remain confident in our legal authority to adopt this program that will ensure the financial harms caused by the pandemic don’t drive borrowers into delinquency and default,” U.S. Secretary of Education Miguel Cardona said in a statement.
The Supreme Court agreed to take the case on President Joe Biden’s student loan forgiveness plan last month, and the justices will hear oral arguments on Feb. 28.

In the meantime, the Biden administration is blocked from carrying out its plan. Before it closed its application portal, around 26 million Americans applied for the relief.

Supreme Court to hear two challenges

Biden announced in August that tens of millions of Americans would be eligible for cancellation of their education debt — up to $20,000 if they received a Pell Grant in college, a type of aid available to low-income families, and up to $10,000 if they didn’t.
Since then, Republicans and conservative groups have filed at least six lawsuits to try to kill the policy, arguing that the president doesn’t have the power to cancel consumer debt without authorization from Congress and that the policy is harmful.
The Supreme Court has agreed to hear two of those legal challenges: One brought by six GOP-led states that argue that forgiveness will hurt the companies in their states that service federal student loans, and another involving two plaintiffs who say they’ve been harmed by the policy by the fact that they are partially or fully excluded from the loan forgiveness.

Higher education expert Mark Kantrowitz said the Biden administration made many strong arguments in its brief.
“The federal government does a very good job of demonstrating that the plaintiffs lack legal standing,” Kantrowitz said.
Yet it’s possible the justices will look beyond the issue of legal standing and consider the merits of the plaintiffs’ arguments.
In that case, the president’s plan would face low odds of survival, given the court’s conservative majority, experts say.

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