CHAPEL HILL, NC –A federal district judge in Texas struck down the plan for loan forgiveness last week, blocking the Biden administration’s student debt relief program.
This comes in addition to another block coming from the eighth U.S. circuit court of appeals, both injunctions calling into question whether the move should be considered government overreach.
The Federal Student Aid website says “We are seeking to overturn those orders. If you have already applied, we’ll hold your application,” and encourages those who would benefit from the action to subscribe to their mailing list for updates as the legal battle proceeds.
The Department of Education is no longer taking applications for student loan forgiveness as of Friday, and the pause on federal student loan repayment will end beginning with the new year.
Picture credit: The Wall Street Journal https://www.wsj.com/articles/biden-to-announce-student-loan-forgiveness-plan-11661331600