MADISON, Wis. — Millions of Americans with student loans will have to wait longer to see any forgiveness under President Joe Biden’s plan.

A second federal court has now struck down the plan. That’s left the administration awaiting a decision from the 5th U.S. Circuit Court of Appeals.

So far, 26 million people have sent in applications to the U.S. Department of Education. Applications are now on hold until the final decision is reached about whether Biden’s plan can move forward.

Experts now speculate it will likely end up in front of the U.S. Supreme Court.

Emma Crawford is one of the people who said she would greatly benefit from the student loan forgiveness plan. 

As a Pell Grant recipient, her $28,000 in remaining student debt would be diminished to just $800. 

“Until I see those zeros in my Great Lakes account, I’m still very skeptical and nervous,” she said. “I’m also very grateful because it truly is life-changing for so many of us.”

Crawford is candid about growing up low-income and living on food stamps. Fast forward to today and she is the director of financial wellness at the University of Wisconsin-Madison’s School of Medicine and Public Health. 

A big part of her job is guiding medical students through the student loan repayment process and ensuring they know what their options are.

Last month, she hosted a virtual seminar specifically about Biden’s student loan forgiveness announcement.

“I wouldn’t be able to do the work that I’m doing now without my college degree so, I’m very grateful for that,” she said. “I literally would not have been able to afford college if it weren’t for the Pell Grant.” 

Crawford submitted her application for student loan forgiveness in mid-October. She said the process was simple.

“The borrower doesn’t need to enter their income, but they do need to prove that they meet the income requirements, which is $125,000 or less for individuals and $250,000 or less for married couples,” she said. “Also, you’ll get a confirmation email telling you your form was accepted.”

Crawford said she also wants people to be aware that Wisconsinites who receive student loan forgiveness through this program will have to pay taxes on it. Wisconsin is one of at least seven states poised to tax it as income.

Depending on what the borrower receives in forgiveness, a person could owe up to $530 on their tax bill.

“It’s not something that’s necessarily common sense and many other states are not having to pay taxes on it and we’re not paying federal income taxes on it,” she said. “Because of all that, I do think it will catch many people by surprise when they do their taxes at the end of the year.”

If Biden’s loan forgiveness plan is approved, Crawford said she plans to save for retirement. It’s something she never thought would be possible in her early thirties.

“Just being able to focus on other financial priorities that all of us should be thinking about,” she said. “That in and of itself is so huge and it’s a really big deal for a lot of us who would be seeing this relief.”

In Wisconsin, the Brown County Taxpayers Association filed an emergency effort to block Biden’s student loan forgiveness program. However, U.S. Supreme Court Justice Amy Coney Barrett struck it down last month.