When will student loan forgiveness be applied ?
Millions of Americans rejoiced that their financial condition would soon get better when President Joe Biden declared over the summer a student loan forgiveness plan to cancel student debt. But the question is, when will student loan forgiveness be applied?
But will student loan forgiveness happen this year?
However, due to a court-ordered policy stay, the Biden administration is currently unable to begin providing its relief.
Here is where the student loan forgiveness plan stands and what could possibly follow.
Biden stated that tens of millions of Americans will qualify for student loan forgiveness.
But who qualifies for student loan forgiveness?
On August 24, Biden declared that millions of Americans would be qualified for student loan forgiveness, with amounts ranging from $10,000 to $20,000 depending on whether or not they were recipients of the Pell Grant, a sort of financial aid offered to low-income households.
But before Biden made his move, under pressure from consumer activists and other Democrats, Republicans denounced student loan forgiveness as a gift to wealthy college grads.
They claimed that without Congress’s consent, the president was powerless to forgive debt.
Student loan forgiveness plan is riddled with obstacles
It should come as no surprise that lawsuits piled in.
Currently, the president’s student loan forgiveness plan is being challenged in at least six lawsuits.
A couple of these lawsuits have already been dismissed for lack of “legal standing,” a confusing word that refers to the requirement that a plaintiff demonstrate how student loan forgiveness will damage them.
However, even after their lawsuit was dismissed, the GOP-led states didn’t give up. In their appeal, they requested that the president’s student loan forgiveness plan, which was scheduled to begin in October, be put on hold while their application was reviewed.
The states’ emergency petition was granted by the eighth U.S. Circuit Court of Appeals, therefore the Biden government is currently unable to begin the student loan forgiveness plan.
Student Loan Forgiveness Could Go to the Supreme Court
According to experts, the lawsuit may take months to resolve if the appeals court decides that the states do indeed have legal standing.
Upon losing, the Department of Education student loan forgiveness will probably appeal to the Supreme Court.
If either party appeals, it is difficult to foresee how the nation’s highest court might rule. Two cases that sought to stop student loan forgiveness have previously been dismissed by the Supreme Court.
Conclusion : When will student loan forgiveness be applied ?
Given that there have been more conservative justices than liberals, Booth predicts that if the Supreme Court consented to hear a case involving student loan forgiveness, it would likely prevent it.
For the time being, the Department of Education student loan forgiveness encourages borrowers to continue applying for debt forgiveness, despite the fact that they are temporarily prevented from executing debt releases. For latest information visit Department of Education official website.
When will student loan forgiveness be applied and who qualifies?