Debt Forgiveness Program Opens, Hits Legal Snag

The Biden administration’s loan forgiveness plan recently opened, and now it faces a temportary injunction.

On Friday, Oct. 21, the U.S. 8th Circuit Court of Appeals filed a temporary block on the discharge of debt via the Biden administration’s student loan forgiveness program, amidst a court petition by six states to stop the debt forgiveness.

The new program, which was announced in Aug., is aimed at reducing student loan debt for borrowers with federal loans. Applications for the program opened on Oct. 17 when the Biden administration rolled out a beta version of the website.

Not all students who have some form of student debt are eligible for debt forgiveness, though.

Those eligible for debt relief are listed as follows on the Federal Student Aid website:
• Individuals who made less than $125,000 in 2021 or 2020
• Families that made less than $250,000 in 2021 or 2020

Pell Grant recipients who qualify for debt relief are eligible for up to $20,000 of forgiveness, while $10,000 will be awarded to non-Pell Grant recipients.

Despite the recent legal issues, the Biden administration and the Department of Education are still encouraging those eligible to apply for debt forgiveness.

For more information, interested students can visit the website and apply before Dec 31, 2023.

About Jay Willis 11 Articles
Jay Willis is a junior at Albion College and is a Political Science and History major. He is from Dearborn, Michigan, and is a member of the Gerald R. Ford Institute for Public Policy and the Prentiss M. Brown Honors Program.

1 Comment

  1. I feel that this debt foregivness is wrong. These people made their debt they should be responsable to pay it. the tax payers don`t owe them a living so why should they have to pay for it ???.

Leave a Reply

Your email address will not be published.