Who Qualifies Student Loan Forgiveness – Questions remain about the relief program after an appellate court issued a temporary stay against the Biden’s student loan forgiveness plan. Biden’s plan was designed to forgive up to $10,000 dollars in student loan debt for borrowers making less than $125,000 dollars per year.
Borrowers who received Pell Grants to benefit lower-income college students would have up to $20,000 of their debt cancelled. President Biden unveiled student loan forgiveness plans in August.
It faced multiple legal issues and the department is temporarily blocked from discharging loans through the new forgiveness program.Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina has brought a case alleging that the president overstepped his authority.
All the things to know about Student Loan Forgiveness.
Not only that, he even threatened the revenue of state entities that profit from federal student loans. The states appealed the ruling and requested an emergency stay to prevent the administration from canceling any loans. Yet, students can still apply to the loan program.
The appeals court is weighing whether to issue an injunction, further halting the Student Loan Forgiveness program while the case proceeds. “It’s going to happen,” the president, Joe Biden said about the administration’s chances of beating back the legal challenges. Biden said that the administration will beat back the states’ legal challenge. Stay tuned to our website for such news.
Written and edited by Rajeshwari.