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 studentaid.gov website and apply before Dec 31, 2023.