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Biden’s administration forced to suspend the student debt forgiveness plan

On Thursday night, a court decision put a halt into Biden’s student loan forgiveness program for the time being. The decision came after almost 26 million Americans already applied for debt cancellation. Read on for more.

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Student borrowers cannot apply for debt relief at this time.

student debt forgiveness plan
No new applications for the student loan forgiveness program. Source: Adobe Stock.

The Biden-Harris administration stopped taking new applications on their student debt forgiveness plan after a court decision last Thursday night. According to a note on the debt relief website, the courts have issued a blocking order on the program. As such, the plan is on hold while the government seeks to overturn those orders. 

The debt forgiveness plan interruption comes shortly after a Texan federal judge’s rejection of President Biden’s executive measure last August. The plan is to cancel up to $20,000 in student loan debt for millions of Americans. 

In his 26-page decision, Judge Mark Pittman wrote that the U.S. is not ruled by an all-power executive with a pen. Pittman, who’s a federal judge appointed by former President Trump in 2019, sides with the Job Creators Network Foundation, which is a conservative advocacy group. 

As of now, the Biden administration reported that the Justice Department is seeking to appeal the court’s decision about suspending the student loan debt cancelation program.

Education Secretary’s Miguel Cardona, stated that the Department believes that the student debt forgiveness plan is necessary and lawful. It gives borrowers and their families breathing room to recover financially from the pandemic. Plus, it ensures the repayment plan will be successful once it starts. 

Cardona also reiterated in a statement that the Department is not standing down from the attempts to block their student debt forgiveness plan. 

More obstacles on Biden’s debt forgiveness plan

student debt forgiveness plan
The Department of Education is not standing down. Source: Adobe Stock.

Biden’s student debt forgiveness plan was already on hold due to a challenge brought by a few Republican-led states. Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina also accused the president of abusing his authority. 

However, a federal judge overturn the lawsuits. He stated that while important and significant challenges to the plan were raised, they lacked legal standing to pursue it. That didn’t mean the states gave up, filing an appeal shortly after.

They also asked the courts to suspend the student debt forgiveness plan, which was supposed to roll out in October, while the judge considers their request. The Circuit Court of Appeals then granted the states appeal, which left the Biden administration unable to start the program. 

Nevertheless, the Education Department had encouraged student loan borrowers to keep applying for the student debt forgiveness plan. That is because then, the program was still running. 

Student loan debt forgiveness: Your ultimate guide!

If you’re still in the dark as to how Biden’s student debt forgiveness program works, we can help. In the link below, you’ll find a comprehensive guide about what it means. Plus, how you can apply and how much debt you can rid of.

student loan relief

Student loan debt forgiveness: Your ultimate guide

Find out how you can apply and get as much as $20,000 of student debt canceled.

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