The $1.8 trillion student debt bubble is about to burst, per Bloomberg, as after a three-year pause, payments on federal student loans are set to resume in the next six months.

The Supreme Court case centers around Biden’s plan to forgive $10,000 per borrower — or $20,000 for Pell Grant recipients — with a $125,000 income cap for individuals and $250,000 for households. More than 40 million Americans are eligible for forgiveness, according to the administration, and about 26 million people have already submitted applications. If it goes ahead, it would wipe out more than $400 billion in debt.

In November, a federal appeals court issued a nationwide injunction temporarily barring the Biden administration's student loan debt relief program.

The ruling by 8th Circuit Court of Appeals in St. Louis came after the states of Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina argued in a lawsut that the loan relief program threatens their future tax revenues, and that plan circumvents congressional authority.

"The injunction will remain in effect until further order of this court or the Supreme Court
of the United States," a three-judge panel of the appeals court said in its ruling.