Several Republican-leaning states filed a lawsuit to have President Joe Biden’s Student Loan Forgiveness Plan put on hold. However, you should still apply. Here’s why…
You may have heard that President Joe Biden’s Student Loan Forgiveness Plan had been placed on hold. However, you should STILL apply if you haven’t already.
Last week, Biden’s Student Loan Forgiveness Plan was put on pause by a federal appeals court. The 8th Circuit Court of Appeals issued an administrative stay on debt discharges while it considers a lawsuit filed by six Republican-leaning states, including Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina. According to the plaintiffs, debt forgiveness would result in a loss of tax revenue, causing economic harm to their states.
Earlier this week, a lower court dismissed the suit, ruling that the states lacked standing. U.S. District Judge Henry Autrey in St. Louis ruled that while the states had raised “important and significant challenges to the debt relief plan,” they ultimately lacked legal standing to pursue the case.
The Biden administration has agreed to hold off on discharging any loans while it awaits a decision. However, borrowers should still apply.
Over the weekend, Education Secretary Miguel Cardona let borrowers know they’re still “moving full speed ahead” to continue processing applications. Check it:
Amid some Republicans trying to block our student debt relief program, we are moving full speed ahead, preparing for implementation so we can deliver relief to borrowers who need it most. pic.twitter.com/g3SMEhbSQz
— Secretary Miguel Cardona (@SecCardona) October 22, 2022
Also…
On Friday, President Biden announced 22 million borrowers had already registered for forgiveness since the form opened on October 14th.
“Folks, it takes less than five minutes,” Biden said during a speech at HBCU Delaware State University. “It’s about as easy to apply while hanging out with your friends at home or watching a movie. The vast majority are applying on their phones. It’s easy.”
Peep the clip above.
Peep some of the White House’s social media content to encourage folks to sign up:
According to The White House, the pause doesn’t prevent them from reviewing applications while it awaits a final decision. So, you def should get your application in – if you haven’t already.
The Biden Administration announced it would launch its Student Loan Forgiveness Plan this month to offer loan forgiveness up to $10,000 for individual borrowers who earn less than $125,000 per year and up to $20,000 for qualifying Pell Grant recipients.
Student borrowers have until December 31, 2023 to apply by visiting StudentAid.gov.
