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Courts Pause President Biden’s Debt Forgiveness Plan

A U.S. District in Texas ruled on November 10 that President Biden overstepped his authority in creating a student debt relief program without congressional approval, preventing the Administration from providing relief to federal borrowers. A federal appeals court expanded the ruling on November 14 saying, the pause “will remain in effect until further order of this court or the Supreme Court of the United States.”

The debt relief plan, which was announced earlier this year and could have benefited more than 40 million borrowers, sought to forgive $20,000 in federal student loan debt to qualified borrowers. Already, about 26 million people have applied, and 16 million applications have been approved. However, because of court rulings, none of the relief has been provided.

The administration has appealed the November 10 ruling, but many expect that the Supreme Court will ultimately decide its future.

The Department of Education said that it will retain the applications for those that have applied for consideration and process them if the courts rule in the Administration’s favor. 

AACTE will provide updates as necessary. 



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