President Joe Biden’s student loan forgiveness program
What student loan borrowers need to know after a federal court struck down Biden’s forgiveness program ???
What happens now for borrowers?
Borrowers will have to wait for the government’s appeal to the 5th Circuit Court to play out.
What are the legal arguments?
They argued that they could not voice their disagreement with the program’s rules because the administration did not put it through a formal notice-and-comment rule making process under the Administrative Procedure Act.
Where do the other lawsuits stand ?
The Biden administration is facing several other legal challenges to the program. Supreme Court Justice Amy Coney Barrett has denied two separate requests to challenge the program.
Who may be eligible for student loan forgiveness ?
1. Individualborrowers who earned less than $125,000 in either 2020 or 2021
2. Married couples or heads of households who made less than $250,000 Annually in those years could see up to $10,000 of their federal student loan debt forgiven.
If a qualifying borrower also received a federal Pell grant while enrolled in college, the individual is eligible for up to $20,000 of debt forgiveness.
There are a variety of federal student loans and not all are eligible for relief Federal Direct Loans, including subsidized loans, unsubsidized loans, parent PLUS loans and graduate PLUS loans, are eligible.