2 minute read
Student debt relief on hold
By Lillian Lewis
On Feb. 28, The Student Loan Debt Relief Plan made its way to the Supreme Court. Until two cases are decided, students can no longer apply for Student Loan Debt Relief.
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The student loan payment pause that was planned to expire on Dec. 31 of last year was extended until the end of June to allow for the Supreme Court to hear the two lawsuits. If the debt relief program has not been implemented and the litigation has not been settled on June 30, 2023, student payments will resume 60 days after.
Two significant lawsuits block student loan forgiveness. Biden v. Nebraska was filed by Republican officials in six states who argue that President Biden was overstepping his authority as president by planning to cancel these loans. These states also claim that the cancellation of these loans would leave financial harm to businesses that service loans.
U.S. Department of Education v. Brown was filed by the Job Creators Network Foundation on behalf of student loan borrowers Alexander Taylor and Myra Brown. Under Biden’s plan, Taylor qualifies for $10,000 of debt relief; however, he does not qualify for the $10,000 in forgiveness reserved for recipients of Pell Grants, a form of federal aid for low-income students.