Following a second Federal Court denial, applications for student loan forgiveness are no longer being accepted.
According to the Associated Press, the Department of Education states on its federal student aid website that “Courts have issued orders blocking our student debt relief program. Therefore, at this time, we are not accepting applications. We seek to rescind these orders.
So far, about 26 million people have applied for student debt forgiveness, of which 16 million have been approved. Despite the approval, the court’s decision to close prevented any relief from taking place.
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President Joe Biden announced plans in August to cancel up to $20,000 in federal student debt. The qualifications: incomes below $125,000 or households earning less than $250,000.
U.S. District Judge Marc Pitman in Texas, said Biden overstepped his authority by creating the student debt relief program without congressional approval.
The Biden administration has appealed Pittman’s shutdown.
“In this country, we are not ruled by an all-powerful executive with a pen and a phone. Instead, we are governed by a Constitution that provides for three separate and independent branches of government,” Pittman said.
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Previously, the debt relief program was temporarily blocked by a US 8th Circuit Court of Appeals in St. Louis.
People with student loan debt have not been required to make payments during the pandemic. But payments are expected to resume and interest will start accumulating again in January.
While people with student loan debt have not been mandated to make payments during the pandemic, that will change next January when payments resume and loan interest ensues.