Student loan forgiveness

2022 - 11 - 11

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Image courtesy of "AS English"

Student Loan Forgiveness update: Texas Court blocks Biden's debt ... (AS English)

The President's program has faced a number of legal challenges in GOP-led states and the latest looks set to go all the way to the Supreme Court.

This would be a nightmare for borrowers who are scheduled to resume making student loan repayments from 1 January 2023. The White House has indicated that it will pursue all legal avenues to enact Biden’s program. The Trump-appointed Justice Amy Coney Barrett has already The Biden administration will be unable to action the promised debt relief until the legal challenge is settled. However those challenges had previously been rebuffed in lower courts too, so it was less likely that Justice Barrett would intervene. Since the online application process opened last month more than 22 million had signed up for the support, but that has been thrown into jeopardy.

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Image courtesy of "CNN"

What student loan borrowers need to know after a federal court ... (CNN)

Student loan borrowers are now waiting indefinitely to see if they'll receive debt relief under President Joe Biden's student loan forgiveness program after ...

There are a variety of federal student loans and not all are eligible for relief. But that case will have to play out before the Biden administration can cancel any federal student loan debt under the program. It could take months for the court to issue a final ruling. But the Department of Justice could also ask for an emergency stay of the Texas judge’s order. While it can be tough to follow all the various legal challenges, borrowers can But federal student loans that are guaranteed by the government but held by private lenders are not eligible unless the borrower applied to consolidate those loans into a Direct Loan before September 29. One plaintiff did not qualify for the student loan forgiveness program because her loans are not held by the federal government and the other plaintiff is only eligible for $10,000 in debt relief because he did not receive a Pell grant. [lower court judge dismissed](https://www.cnn.com/2022/10/20/politics/biden-student-loan-forgiveness-lawsuit-dismissed/index.html) the lawsuit on October 20, ruling that the states did not have the legal standing to bring the challenge. The Biden administration has argued that Congress has given the secretary of education the power to broadly discharge student loan debt in a 2003 law known as the HEROES Act. Under the rules of the program, eligible low- and middle-income borrowers can receive up to $10,000 of federal student loan forgiveness and up to $20,000 in cancellation if they also received a While the Biden administration has faced several legal challenges to the student loan forgiveness program since it was announced in August, the ruling on Thursday is the most significant setback thus far – prompting the Department of Education to [student loan forgiveness program](http://www.cnn.com/2022/08/31/politics/biden-student-loan-forgiveness-faq/index.html) after a federal judge in Texas struck down the program Thursday, declaring it illegal.

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Image courtesy of "Forbes"

Student Loan Forgiveness Application Taken Down After Court ... (Forbes)

The Education Department has shut down the application for borrowers to apply for President Biden's one-time student loan forgiveness initiative.

Yes — With Some Caveats](https://www.forbes.com/sites/adamminsky/2022/11/10/can-you-apply-for-multiple-student-loan-forgiveness-programs-yes---with-some-caveats/) [A New, Bigger Student Loan Forgiveness Initiative Is Set To Launch — And It’s Not The One That You Think](https://www.forbes.com/sites/adamminsky/2022/10/27/a-new-bigger-student-loan-forgiveness-initiative-is-set-to-launch---and-its-not-the-one-that-you-think/) Biden’s one-time debt cancellation initiative would have provided [$10,000 or more in student loan forgiveness](https://www.forbes.com/sites/adamminsky/2022/08/25/how-to-get-up-to-20000-in-student-loan-forgiveness-under-bidens-new-plan/) to tens of millions of borrowers who met loan and income eligibility criteria. “If you've already applied, we'll hold your application,” says a message on the application website. Virginia Foxx (R-NC), Republican leader on the Education and Labor Committee, in a statement on Friday. But these borrowers will effectively remain in limbo for the time being. [Biden Student Loan Forgiveness Plan Is In Peril: Key Takeaways After Court Rules It’s Illegal](https://www.forbes.com/sites/adamminsky/2022/11/11/biden-student-loan-forgiveness-plan-is-in-peril-key-takeaways-after-court-rules-its-illegal/) [What The Election Results Mean For Student Loan Forgiveness: 4 Key Takeaways](https://www.forbes.com/sites/adamminsky/2022/11/09/what-the-election-results-mean-for-student-loan-forgiveness-4-key-takeaways/) [Can You Apply For Multiple Student Loan Forgiveness Programs?

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Image courtesy of "Los Angeles Times"

Student loan forgiveness may be dead. Here's what's going on (Los Angeles Times)

A federal judge in Texas threw out President Biden's student loan forgiveness program. The Education Department plans to appeal, but the program is on hold ...

the Environmental Protection Agency](https://www.oyez.org/cases/2021/20-1530), a case [challenging the EPA’s authority to regulate greenhouse gas emissions](https://www.latimes.com/politics/story/2022-06-30/supreme-court-rules-for-coal-producing-states-limits-epas-power-to-fight-climate-change) from power plants. Because they didn’t have the votes to pass it. [ruled](https://storage.courtlistener.com/recap/gov.uscourts.moed.198213/gov.uscourts.moed.198213.44.0_1.pdf) that the alleged injury — a loss of income from student loan servicing agencies or investments — was either speculative or independent from state finances. The appeals court with jurisdiction over the Texas case, the U.S. But that argument only applies “where there was supposed to be [public] notice and comment” prior to the agency acting, he said. In another, the plaintiffs could avoid the harm (an increase in their state taxes) by turning down the forgiveness the department offered. In the case brought by six Republican-controlled states, U.S. Pittman in Texas, who held that the department didn’t have the legal authority to offer loan forgiveness on that scale. Congress passed the HEROES Act to protect borrowers who were military reservists and National Guard members deployed to combat in the wake of the 9/11 terrorist attacks. According to the Congressional Budget Office, the program would The act gives the department the power to “waive or modify” any requirement for student loans, including those written into federal statutes. That’s typically the case for borrowers enrolled in an income-driven repayment plan.

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