Applications for Biden’s student loan forgiveness no longer being accepted. What now?
WASHINGTON (AP) — The Biden administration is no longer accepting applications for student loan forgiveness after a second federal court shut down the program.
“Courts have issued orders blocking our student debt relief program,” the Education Department said on its federal student aid website. “As a result, at this time, we are not accepting applications. We are seeking to overturn those orders.”
Fulfilling a campaign pledge, President Joe Biden announced in August plans to forgive up to $20,000 in federal student loan debt for individuals with incomes below $125,000 or households earning less than $250,000. The White House has estimated that more than 40 million people could qualify.
Already, about 26 million people have applied, and 16 million applications have been approved. However, because of court rulings, none of the relief has actually gone out. The Department of Education would “quickly process their relief once we prevail in court,” White House Press Secretary Karine Jean-Pierre said.
U.S. District Judge Mark Pittman in Texas ruled Thursday that Biden had overstepped his authority in creating the debt relief program without congressional approval.