Following the suspension of the program by a second federal court, the Joe Biden administration is no longer accepting applications for student loan forgiveness.
On its federal student aid website, the Education Department stated that “courts have issued orders prohibiting our student debt relief program.” “As a result, we are not accepting applications at this time. We are attempting to have the orders reversed.
President Joe Biden announced in August intentions to cancel up to $20,000 in federal student loan debt for those with incomes under $125,000 or households making less than $250,000, fulfilling a campaign promise. According to a White House estimate, more than 40 million Americans might be eligible.
There have already been around 26 million applications, and 16 million of those have been accepted.
However, none of the relief has been distributed due to court decisions.
After we win in court, the Department of Education will “immediately expedite their relief,” according to Karine Jean-Pierre, the White House press secretary.
Biden had overstepped his bounds by establishing the debt relief program without congressional consent, according to a ruling made on Thursday by U.S. District Judge Mark Pittman in Texas.
“In this country, we are not ruled by an all-powerful executive with a pen and a phone. Instead, we are ruled by a Constitution that provides for three distinct and independent branches of government,” Pittman wrote.
That judgment has been appealed by the administration.
The 8th U.S. Circuit Court of Appeals temporarily halted the program while it deliberated whether to impose a permanent prohibition, and Pittman’s decision followed. A dozen Republican-led states initiated that lawsuit.
The issue of student loan forgiveness will probably come before the Supreme Court.
During the pandemic, borrowers of student loans have not been forced to make payments. However, payments will recommence and interest will start to accrue once more in January.
The payment suspension would not be renewed, according to Biden, but that was before the court decisions. It was unclear if the suspension would last while the program’s legal challenges were resolved.
The Education Department stated on its website that it would keep the applications for loan forgiveness for individuals who had already submitted them.
