Update on Loan Forgiveness Plan (Court blocks application)

Due to economic and financial struggles caused by the pandemic, the Biden-Harris Administration has drafted a debt relief plan to help those affected by student loan debt.

Unfortunately the application is not available at the current moment. It was available for a couple months before courts issued orders to stop the student debt relief program.

The Biden-Harris administration & the Dept. of Education are currently seeking to overturn the court orders.

It is important to note that the administration believes that the lawsuits are meritless.

These lawsuits are preventing the U.S. Department of Education from relieving the debt off many current and former college students.

It was the 8th U.S. Circuit Court of Appeals that stopped the relief from taking effect, according to an Insider article.

A federal judge in Texas also ruled the relief plan as illegal and blocked it on Nov. 14th following a lawsuit.

The studentaid.gov website states that they will hold your application and to check back for updates as this situation is ongoing.

Miguel Cardona, the Secretary of Education, sent out emails to applicants that have applied and are eligible.

According to a CBS News article, 16 million Americans with student loan debt received an email that they had been approved for debt relief.

The email states that they will send out the debt relief once they prevail in court. Numerous lawsuits have been filed to challenge the debt relief program,

There were approximately 26 million applicants in total.

All applications are currently on hold.

Despite the lawsuits, the Biden-Harris Administration is committed to ensuring that all eligible applicants receive their relief which can range from $10,000 to $20,000 depending on your Pell Grant status.

Biden has extended the student loan repayment pause to June 30th, 2023.

If the courts do not reach a decision by June 30th, then payments will resume 60 days later or 60 days after the decision if it ends up at an earlier date..

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