Biden: 16M Student Loan Forgiveness Applications Already Approved, But Relief Is ‘Pending’ Due To GOP Challenge

President Biden has announced significant progress in processing millions of student loan forgiveness applications filed by borrowers seeking relief under his signature one-time cancellation program. .

But Mr. Biden has accused Republican state leaders of temporarily paralyzing the student-loan forgiveness initiative by filing legal challenges.

Biden’s student loan forgiveness plan postponed by court challenge

Biden administration plan allows up to 40 million borrowers to receive Student loan forgiveness of $10,000 or up to $20,000 If your income has been within a certain range in any of the last two years. Only federal student loans held by the government are eligible for relief.

However, several individuals, conservative legal organizations, and Republican state leaders have filed multiple legal challenges in an attempt to block the plans.Several such lawsuits have already dismissed To date, no plaintiff has been able to prove sufficiently specific damages to warrant a standing legal standing, so by a federal judge.

But last month, a Republican-led coalition of state attorneys general appealed the dismissal of the case to the Eighth Circuit Court of Appeals. We are asking the Court of Appeals to issue an order. Meanwhile, the court handed down administrative sanctions. Temporarily blocked student loan forgiveness program almost two weeks. That temporary stay remains in effect while the court considers legal arguments regarding the preliminary injunction.

Biden slams Republicans for blocking student loan forgiveness as midterm elections approach

and series of tweets On Thursday, President Biden accused Republicans of blocking student loan forgiveness for millions of borrowers.

“Last month, I started the application For our administration’s student debt relief,” Biden said. “Nearly 26 million Americans have already provided us with information to consider for this life-changing relief. And from this week, [the Education Department] 16 million applications will be approved…but the relief is pending.

The Republican Coalition’s main argument in the Eighth Circuit was that Biden’s student loan forgiveness initiative would deprive state-affiliated FFELP agencies (the agencies that help run the old federal student loan program involving commercial lenders) of revenue. Therefore, it causes economic damage to the state. result of debt consolidation.

However, the Biden administration has said that commercially held FFELP loans Not eligible for the initiative as of September 29, before student loan forgiveness applications were available (not to mention approved). Justice Department attorneys also said one of the major FFELP agencies named by Republican state challengers, MOHELA, is an independent agency that can sue and be sued in its own name. He said he did not appear to be directly involved in the lawsuit.

Mohera The communications seemed to confirm this to Rep. Cori Bush (D-MO) earlier this week. The agency said its leadership “was not involved in the Missouri Attorney General’s Office’s decision to file a preliminary injunction in federal court on September 29, 2022,” and that MOHELA “exists to make a profit.” I have not. Department of Justice attorneys immediately forwarded the letter to the Eighth Circuit.

Biden vowed to defeat the Republican-led challenge.

“We are fighting these attacks from Republican elected officials in court,” he tweeted. I will never apologize for.”

Borrowers can still submit student loan forgiveness applications

This student loan forgiveness program has been put on hold while the Eighth Circuit’s temporary order remains in effect, but Biden’s comments confirm that the Department of Education can continue to receive and process student loan forgiveness applications. . His comments also suggest the administration could process the form quickly. Application first published.

While the Eighth Circuit’s temporary stay is in effect, it “will continue to review the application,” it said. Application website.

Further Student Loan Forgiveness Reading

Court block on student loan forgiveness continues, but there’s a big update

When can I get my student loan forgiveness? Important details about timing

New, Bigger Student Loan Forgiveness Initiative Is Coming — And It’s Not What You Think

Conversely, Biden administration announces new eligibility limits for student loan forgiveness

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