Applications for Biden's student loan forgiveness no longer being accepted. What now?

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The Biden administration is no longer accepting applications for student loan forgiveness after a second federal court shut down the program.

"Courts have issued orders blocking our student debt relief program," the Education Department said on its federal student aid website."As a result, at this time, we are not accepting applications. We are seeking to overturn those orders."

Explainer: Where does the student loan debt plan stand? How the forgiveness plan works The debt forgiveness plan announced in August would cancel $10,000 in student loan debt for those making less than $125,000 or households with less than $250,000 in income. Pell Grant recipients, who typically demonstrate more financial need, would get an additional $10,000 in debt forgiven.

The Texas case Pittman — an appointee of former President Donald Trump based in Fort Worth, Texas — made it clear that he felt Biden overstepped his authority. He said the Higher Education Relief Opportunities for Students Act of 2003, commonly known as the HEROES Act, did not provide the authorization for the loan forgiveness program.

The plan has faced other legal challenges. In October, Supreme Court Justice Amy Coney Barrett rejected an appeal from a Wisconsin taxpayers group. A federal judge had earlier dismissed the group's lawsuit, finding they didn't have the legal right, or standing, to bring the case. Supreme Court-bound? The legal situation is complicated because of the numerous lawsuits. It's likely that the Texas case and the lawsuit filed by the six states will be appealed to the Supreme Court. Before it reaches that level, the 5th and 8th Circuit appeals courts — both dominated by conservative judges — will rule separately in each case.

At the same time, emergency orders can signal how courts will ultimately decide a case. In January, the Supreme Court consolidated challenges to the administration's authority to impose a vaccine-or-testing requirement on the nation's large employers. A few days after hearing arguments, the court split 6-3 to block the requirement, saying the challengers were likely to prevail in the end.

"I think I'd be a fool not to apply," she said, adding,"I don't think it's necessarily fair, especially to people who chose not to go to school."

 

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