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Student loan forgiveness plan kept on hold, graduates remain uncertain about the future

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The student loan forgiveness plan faced another loss in court on Monday. The federal appeals court panel has agreed to a preliminary injunction that stops the program from moving forward during the appeal.

According to Rochester First, this ruling was made by a three judge panel days after a Texas judge blocked the program. The case in Texas was appealed and this will likely be appealed as well.

In the meantime, student loan borrowers will need to wait to see if they can get the forgiveness. The plan is to give those making less than $125,000 $10,000 in forgiveness. If the student received a Pell Grant, the maximum forgiveness is raised to $20,000. Those with federal student loans for undergraduate and graduate school may qualify. Parents that took out Parent Plus loans may also qualify.

Finger Lakes Partners (Billboard)

For the next three decades the plan is expected to cost $400 billion. On October 20 a judge had allowed the program to move forward, only for it to be blocked the next day to hear a lawsuit against the plan. This lawsuit was filed by Nebraska, Missouri, Iowa, Kansas, Arkansas and South Carolina.

The latest ruling made on Monday was made by three Republican judges, two of which were appointed by former President Donald Trump. The other was appointed by former President George W. Bush. The hold is now in place until the issue is resolved in court.

Now, graduates waiting to see if they will need to start paying back their loans are worried about what their future might hold. The constant back and forth has left many confused.

The forgiveness plan was originally announced in August and left many feeling relieved. In all, 26 million borrowers applied for the forgiveness and 16 million have been approved. There are 43 million Americans with student loan debt, according to Local Syracuse.

Related: Student loan forgiveness plan struck down by federal judge

Related: When will borrowers find out if they’re getting the student loan debt forgiveness?

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