Millions of student loan borrowers are waiting to hear news about whether or not they will qualify for the forgiveness plan set forth by the Biden administration.
Applications opened last month and the plan was to start sending the relief this month, according to My Twin Tiers.
Those plans came to an abrupt stop when the U.S. Court of Appeals blocked the measure temporarily. This court case is the result of six Republican led states challenging the plan. Right now, it’s the only lawsuit of many to successfully put a stop to the plan.
The plan is to forgive $10,000 in federal student loans for borrowers earning less than $125,000. Those who had Pell Grants may see up to $20,000 forgiven.
Right now the court is trying to see whether the states have standing to sue over this plan. A federal judge already ruled that they didn’t because they could not demonstrate how the plan directly harmed their states.
When appealed, the 8th Circuit gave the states time to submit proof that it does harm their states. Once both sides are heard and a result is reached, the plan will either move forward or it won’t.
The briefings have been submitted, so a decision should be made soon. If the case goes to trial, it’s not likely the loans will be forgiven anytime soon.
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