Student Loan Forgiveness Update: Another Court Blocks the Plan

Student Loan Forgiveness Update: Another Court Blocks the Plan

President Biden's student loan forgiveness update is here: a US appeals court has extended a block on the plan until further notice.

The case is about barring the US Department of Education from applying student loan forgiveness program based on President Biden's order in August.

The lawsuit was filed by six states: Missouri, Nebraska, Iowa, Arkansas, Kansas, and South Carolina.

They argue that President Biden skirted congressional authority to implement a student loan forgiveness plan.

Furthermore, the Biden student loan forgiveness plan threatens future tax revenues and money earned by a state that invests in student loans.

On October 21, the court temporarily barred the government from continuing student loan forgiveness applications and discharging student loans.

Later, the state's lawsuit but dismissed but they are appealing that decision. In a written statement, White House spokeswoman Karine Jean-Pierre said they are still confident about the student loan forgiveness plan.

She believes the student loan forgiveness program is essential to help borrowers as they are still recovering from the pandemic.

The student loan forgiveness plan would write off around $430 billion of the $1.6 trillion outstanding student debt.

The amount of forgiveness goes up to $10,000 for borrowers making less than $125,000/year (individual) or $250,000/year (household).

Therefore, many people were wondering is the student loan forgiveness passed

Designed by Alexander Rabu