U.S. Supreme Court justice refuses to block Biden’s student loan program in Indiana case – WISH-TV | Indianapolis News | Indiana Weather forecast
INDIANAPOLIS (WISH) — U.S. Supreme Court Justice Amy Coney Barrett has denied a request to halt the Biden administration’s student loan forgiveness program.
Coney Barrett on Friday refused to grant an injunction in a federal court case in Indianapolis. The plaintiff had sought the injunction while appealing a decision of a federal judge in Indianapolis.
Frank Garrison sued because he would have to pay taxes on the debt forgiveness. A federal judge in Indianapolis denied Garrison’s request for an injunction, after the US Department of Education said Garrison had been removed from the debt forgiveness program.
Coney Barrett denied the request without transmission to the whole court.
Below is Friday’s report from CNN
Where’s Biden’s student loan forgiveness program?
(CNN) – President Joe Biden’s student loan forgiveness program remains on hold while a federal appeals court considers a legal challenge brought by six GOP-led states.
The Biden administration continues to accept student loan forgiveness applications, which are worth up to $20,000 per borrower, but is currently not authorized to forgive student loan debt due to a temporary administrative suspension imposed on the program by the 8th US Circuit Court of Appeals on October 21.
Then the appeals court will decide whether or not to grant a preliminary injunction requested by the states. If granted, the student loan forgiveness program could be suspended while litigation continues and the court hears both sides on the merits of the case. If the injunction is not granted, the cancellation of the debt can begin for the duration of the appeal.
The decision on the preliminary injunction could intervene at any time.
A lower court judge dismissed the lawsuit on Oct. 20, ruling that the states did not have the legal standing to bring the challenge. Supreme Court Justice Amy Coney Barrett also dismissed a separate challenge to Biden’s student loan forgiveness program, declining to take an appeal filed by a group of Wisconsin taxpayers.
Meanwhile, the Biden administration also faces lawsuits from Arizona GOP Attorney General Mark Brnovich and conservative groups such as the Job Creators Network Foundation and the Cato Institute.
Numerous lawsuits claim the Biden administration lacks the legal authority to write off student loan debt broadly. But government lawyers argue that Congress gave the Secretary of Education the power to discharge his debt in a 2003 law known as the HEROES Act.
Nearly 26 million people have applied for student loan forgiveness so far, the Biden administration announced Thursday. The application was opened on October 14.
The administration also said Thursday that 16 million loan forgiveness applications could be approved this week.
“By the end of this week, the Department of Education will have approved applications for 16 million Americans and sent the necessary documents to student loan services,” Biden said during an appearance at Central New Mexico. Community College Thursday.
But borrowers shouldn’t expect to see their debts forgiven until the appeals court lifts the program’s suspension.
How can borrowers apply for student loan forgiveness?
Borrowers can apply online here: https://studentaid.gov/debt-relief/application.
Applicants can expect to receive an email confirmation once their application has been successfully submitted. Next, borrowers will be notified by their loan servicer if and when debt forgiveness has been applied to their account.
Borrowers have until December 31, 2023 to submit an application.
If the court allows the administration to grant student loan forgiveness, about 8 million eligible borrowers could automatically receive debt forgiveness because the Department of Education already has their income information. These borrowers could start seeing their debt forgiven on November 15, at the earliest, if there is no legal break in place at that time.
Who can qualify for student loan forgiveness?
If Biden’s program is allowed to go forward, individual borrowers who earned less than $125,000 in 2020 or 2021 and married couples or heads of households who earned less than $250,000 a year during those years could see up to $10,000 of their federal student loan debt forgiven.
If an eligible borrower also received a Federal Pell Grant while enrolled in college, they are eligible for debt forgiveness of up to $20,000.
There are a variety of federal student loans and not all are eligible for relief. Direct federal loans, including subsidized loans, unsubsidized loans, parent PLUS loans, and graduate PLUS loans are eligible.
But federal student loans guaranteed by the government but held by private lenders are not eligible unless the borrower has requested to consolidate those loans into a direct loan by Sept. 29.