The 8th U.S. Circuit Court blocked President Biden’s student loan forgiveness program after Republicans challenged the debt relief in court. (iStock)
The US Court of Appeals for the 8th Circuit recently issued an emergency order temporarily halting the Biden administration’s mortgage cancellation plan.
Six Republican-led states sued to block President Joe Biden’s student loan forgiveness program that would eliminate up to $10,000 in federal loans per borrower and up to $20,000 per the lender for those who used Pell Grants in college.
However, U.S. District Judge Henry Edward Autrey ruled that the state did not state the nature of the accident and rejected a legal challenge to the federal court.
“Although Plaintiffs present substantial and important challenges to the debt relief plan, Plaintiffs cannot proceed to address those challenges,” Autrey wrote in his decision.
But six states – Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina – appealed the decision. And on Oct. 21, the 8th Circuit granted a temporary block on the amnesty plan pending an appeal.
If you have private student loans, you are not eligible for federal student loan forgiveness. But you can lower your monthly student loan payments by financing at a lower interest rate. Visit Credible to find special interest rates that don’t affect your credit score.
WHITE HOUSE releases student pardon application – what to know
The Biden administration is encouraging borrowers to continue applying for loan forgiveness
After the high court temporarily halted the loan forgiveness plan, the Biden administration issued a statement through the Department of Education encouraging borrowers to continue applying for forgiveness. Although the government cannot officially cancel student loans during the moratorium, it said it is moving forward with preparing for forgiveness and collecting applications.
“Today’s interim decision does not stop the Biden administration’s efforts to provide borrowers with debt relief applications and does not stop us from reviewing the millions of applications we receive,” the secretary said. -Teaching Miguel Cardona in the statement. “Amid Republican efforts to block our debt relief program, we are moving quickly to be ready to provide relief to borrowers in need.
“As we continue our preparations to comply with this order, we continue to encourage working and middle-class Americans to apply for debt relief at studentaid.gov,” he continued.
If you have private student loans and are looking to lower your monthly payments, you may want to consider taking out a loan to lower your interest rate. Visit Credible to compare multiple student loans at once and choose the one with the best interest rate for you.
BIDEN’S STUDENT AMENDMENT PLAN — HERE’S WHAT YOU NEED TO KNOW
The White House released the student pardon request
The Biden administration officially released the student amnesty application in October, which is now available online.
Borrowers with federal student loans can fill out a simple application that includes questions such as the borrower’s name, social security number and email address. They then need to confirm their eligibility for student loan relief before submitting the application.
Borrowers have until December 31, 2023 to apply for federal student loan forgiveness.
“As millions of people fill out applications, we’ll make sure the system continues to operate as efficiently as possible so we can free up mortgages for millions of Americans as quickly and efficiently as possible,” Biden said. the delivery time.
Although private student loan borrowers do not qualify for Biden’s debt forgiveness plan, you may want to consider refinancing your loan to lower your monthly payment. . To see if this is the right option for you, contact Credible to speak with a student loan expert and have your questions answered.
Have a finance-related question, but don’t know who to ask? Email The safe money experts at [email protected] and your questions may be answered by Credible in the Money Expert column.
