Recent news may spell trouble for student loan borrowers, putting Chevron ruling and Biden's reelection bid at risk.

• The Supreme Court ruling and the possibility of President Biden not being reelected could impact millions of student loan borrowers.
• Here's what to know about these developments.

Experts predict that recent advancements may pose challenges for student loan borrowers.

The Supreme Court ruling and the uncertainty surrounding President Joe Biden's reelection bid may impact the more than 40 million Americans with student loans, as the Republican-led legal challenges to the Biden administration's debt relief efforts could result in consequences for these borrowers.

Here's what to know about these developments.

New affordable repayment plan faces legal attacks

In the summer of 2023, the Biden administration introduced its new student loan repayment plan, SAVE, which was touted as the most affordable plan ever. Under the program, borrowers could expect to see their bills cut in half or more.

Earlier this year, lawsuits filed by Republican-backed states, such as Arkansas, Florida, and Missouri, threatened the SAVE plan's relief.

The Biden administration was accused by the states of overstepping its authority with SAVE and attempting to circumvent the Supreme Court's decision to block its student debt forgiveness plan.

The SAVE plan in Kansas and Missouri was temporarily halted by two federal judges on June 24. However, the Biden administration was able to appeal part of the injunction against the plan. Currently, the fate of SAVE is uncertain as the judges have not yet made a final decision on the cases.

The presidential election in November may be necessary for borrowers to gain more knowledge, according to Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers.

Buchanan assumes the cases will eventually reach the Supreme Court.

He stated that they wouldn't take it up until the October term, as they were waiting for a later ruling.

Enrollees who have already signed up can gain more insights into the legal changes through a CNBC article from last week.

Chevron ruling may limit Education Department

The Supreme Court ruling may make it more challenging for the Education Department to provide relief to student loan borrowers.

In June, the high court overturned the 40-year-old Chevron doctrine, which required judges to defer to federal agencies' interpretations of disputed laws. The 6-3 ruling, which divided the conservative-majority court along ideological lines, is predicted to weaken the federal government's regulatory authority.

Mark Kantrowitz, a higher education expert, stated that federal agencies will have reduced flexibility in creating, executing, and overseeing regulations.

Kantrowitz explained that Biden's do-over effort at sweeping student loan forgiveness could be more difficult if the president starts cancelling borrowers' debt under so-called Plan B before the election.

"According to Kantrowitz, President Biden's plan for student loan forgiveness is open to legal challenge due to its interpretation of the statute."

With Biden's future at risk, so is student loan aid

Despite his poor debate performance against former President Donald Trump on June 27, even members of his own party are calling for him to bow out of the 2024 presidential race.

For now, the president insists he's staying in.

As speculation over who would replace Biden grows, Vice President Kamala Harris is seen as a possible alternative candidate.

So what would a Harris presidency mean for those with student debt?

Experts predict that Harris will continue to promote Biden's debt relief policies, but his 2020 presidential campaign faced criticism for his debt relief program, which was deemed overly complicated and narrow. To be eligible, borrowers needed to receive a Pell Grant and open a business in a disadvantaged community, among other requirements.

Harris' press secretary, Ernesto Apreza, did not promptly provide a comment when requested.

Consumer advocates are worried about the fact that Trump is currently leading in the polls.

Trump, as president, advocated for the abolition of the U.S. Department of Education's current loan relief programs, including the widely-used Public Service Loan Forgiveness program. Additionally, he proposed to drastically reduce the department's budget and his administration put a stop to a regulation that would have granted loan forgiveness to individuals who were deceived by their schools.

Aissa Canchola-Banez, political director at Protect Borrowers Action, stated that before the pandemic, a new student loan borrower defaulted every 26 seconds and over 99% of educators, first responders, and nurses were denied the relief they were entitled to under PSLF.

According to Canchola-Banez, the stakes for Americans with student debt have never been greater.