Where Biden’s Student Loan Forgiveness Program Stands – KTVZ

Katie Lobosco, CNN

President Joe Biden’s student loan forgiveness program It remains pending while a federal appeals court considers legal challenges filed by six Republican-led states.

The Biden administration continues to accept applications for student loan forgiveness. This is worth up to $20,000 per borrower, but currently you are not allowed to cancel student loan debt. Temporary administrative hold Enrolled in the program on October 21 with the United States Court of Appeals for the Eighth Circuit.

The Court of Appeals will then decide whether to grant the preliminary injunction requested by the state. If granted, the lawsuit may continue and the Student Loan Forgiveness Program may be put on hold while the court hears from both parties on the merits of the lawsuit. If the injunction is not granted, debt cancellation may be initiated while the appeal is pending.

A preliminary injunction may be entered at any time.

lower court judge dismissed the lawsuit On October 20, the state ruled that it had no legal status to challenge.Supreme Court Justice Amy Coney Barrett refused another challenge He opposed Biden’s student loan forgiveness program and rejected an appeal filed by a group of Wisconsin taxpayers.

Meanwhile, the Biden administration also faces lawsuits from Arizona’s GOP Attorney General Mark Brunovich and conservative groups such as the Job Creators Network Foundation and the Cato Institute.

Many of the lawsuits allege that the Biden administration does not have the legal authority to cancel student loan debt broadly. But government lawyers argue that Congress gave the Secretary of Education the power to forgive the debt in her 2003 law, known as the HEROES Act.

About 26 million people have applied for student loan forgiveness, the Biden administration said Thursday. Applications opened on October 14th.

The administration also said Thursday that 16 million applications for loan forgiveness could be approved this week. However, borrowers should not expect their debts to be canceled until the Court of Appeals has lifted the hold on the program.

How can a borrower apply for student loan forgiveness?

Borrowers can apply online here. https://studentaid.gov/debt-relief/application.

Once the application has been successfully submitted, the applicant can receive a confirmation email. The borrower will then be notified by the loan servicer if a debt cancellation has been applied to their account.

Borrowers must submit their applications by December 31, 2023.

If a court allows the administration to forgive student loans, an estimated 8 million eligible borrowers could automatically receive debt cancellation because the Department of Education already has their income information on file. . These borrowers could start seeing their debts canceled as early as November 15, barring a legal moratorium at that point.

Who is eligible for student loan forgiveness?

If Biden’s program is allowed to move forward, individual borrowers with an annual income of less than $125,000 in 2020 or 2021, and couples or householders with an annual income of less than $250,000 in that year, will receive federal student loans. Up to $10,000 of debt may be forgiven.

If the eligible borrower also has a federal guarantee Pell Grant While enrolled in college, individuals are eligible for debt relief of up to $20,000.

There are a variety of federal student loans, and not all qualify for relief. Federal direct loans are eligible, including subsidized loans, non-subsidized loans, Parent PLUS loans, and Alumni PLUS loans.

However, federal student loans that are guaranteed by the government but held by private lenders are not eligible unless the borrower applies by Sept. 29 to have those loans consolidated into a direct loan.

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