A federal judge in Texas on Thursday blocked President Joe Biden’s student loan forgiveness program, declaring the program illegal and further embarrassing millions of student loan borrowers. limbo.
U.S. District Judge Mark Pittman, an appointee of former Republican President Donald Trump, said the program is “illegitimate.” The ruling is considered a victory for conservative opponents of the program.
The decision follows a lawsuit filed by the Job Creators Network Foundation, a conservative group, in October. The lawsuit was filed on behalf of two borrowers, Myra Brown and Alexander Taylor, who said they had no opportunity to provide feedback on the student debt forgiveness plan. The Biden administration has appealed to the Fifth U.S. Circuit Court of Appeals. It is largely staffed by appointees from conservative presidents, including six by Trump.
BLOCKED:US judge in Texas suspends President Biden’s student debt forgiveness plan; appeal filed
In a separate legal challenge, the program was put on administrative hold after a federal appeals court halted the Biden administration from continuing to act on its student debt relief program.
Can I still request a waiver?
No. At least for the time being, because of the action of the court, the federal government cannot accept applications or forgiveness of the debt of the 16 million people whose applications have been approved.
With the program blocked, the Biden administration will not be able to waive student loans until the lower court rules on an injunction request from the six states.
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When are student loans waived?
Broad loan forgiveness could be dead unless Congress passes legislation that allows it or higher courts side with Biden.
The Biden administration initially hoped to cancel debt by the end of this year, before the freeze on student loan payments ends on December 31. All that is now questionable.
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When do you have to pay your student debt?
The pause on student loan payments was extended through December 31, and is the latest extension, according to the Biden administration.
That means borrowers should expect to be able to resume payments in January.
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What happens if you can’t pay your student debt?
Failure to make payments on federal or private student debt could be your personal finance.
Loans become delinquent after missed loan payments and any missed payment can also lead to late fees. Late payments can affect borrowers credit reports and lowering credit scores, making it difficult to get approved for credit cards, other types of loans or leases.
Borrowers can also face garnishment of their wages wage garnishment, including tax refunds and federal benefits, or other legal action due to missed payments.