“Courts have issued orders blocking our student debt relief program. As a result, at this time, we are not accepting applications. We are seeking to overturn those orders.”
The Department of Education's student debt relief website. Applications for loan forgiveness have been paused following a ruling by a Texas federal judge who said the program is "unlawful."
nov 14, 2022
The Recent Ruling: A group called the Job Creators Network Foundation filed a lawsuit in Texas and stated that "the Biden administration violated federal procedures by failing to seek public input on the program" (CBS News). U.S. District Judge Mark Pittman ruled in favor of the foundation.
Why It Matters: The Biden administration plans to appeal; the case will be heard by the Fifth Circuit Court of Appeals, which is a higher court. The legal process is expected to take weeks. For the roughly 26 million people who have already applied for loan forgiveness, applications will be held until a decision has been made.
For more background: Forgiveness or Punishment? The U.S. president absolves millions of Americans from paying back student loans (SmartHER News)