What to know about the pause in student debt relief – Thelocalreport.in

(The hill) – Legal challenges facing the Biden administration over its student loan forgiveness program are leaving borrowers in limbo, as the White House is now forced to halt administration of the program until the Supreme Court rules on it. the case.

Tempers were running high among supporters when the program was announced in August, when Biden promised federal loan forgiveness of $10,000 for those earning less than $125,000 and $20,000 for those earning the same amount and receiving Pell Grants.

While the administration recently notified certain borrowers that they are eligible for forgiveness, it has also indicated that it cannot run the program while the Justice Department fights legal challenges in court, leaving borrowers confused about the status of the forgiveness. promised debt forgiveness. As a result, the administration has also stopped accepting applications for the program.

Here are five things to know about the student loan forgiveness situation.

Court cases delay show

The Biden administration has faced at least six court challenges since it announced the student debt relief program, but only two have been successful in their efforts so far.

A Texas-based Trump-appointed federal judge earlier this month struck down the program, saying Biden had overreached his executive power and it was up to Congress to make such laws.

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