The 8th Circuit Court of Appeals issued a block on President Biden’s student loan forgiveness program last Friday. This brought upon an emergency motion on behalf of attorneys representing Republican-led states.
The plaintiffs include Iowa, Kansas, Missouri, Nebraska, South Carolina and Arkansas. They argue the program will bring irreversible damage to their state student loan programs.
“Today, a judge ordered a stay on President Biden’s student debt cancellation plan… We want to be clear that this is part of the legal process. We are confident that the President’s student debt cancellation plan will remain and that borrowers will receive relief in due time,” said Cody Hounanian, executive director of the Student Debt Crisis Center, in a statement.
In August, the Biden Administration announced that up to $20,000 in student loan debt would be canceled for millions of Americans nationwide. Those who received Pell Grants, a grant specifically for low–and–middle-income families, would be eligible for the entire $20,000, while others were eligible for up to $10,000. Individuals who earned less than $125,000 in 2020 and 2021 and married couples whose annual income is less than $250,000 were also eligible.
Last week, the U.S. Department of Education established a website where people can apply for relief. The application process was supposed to be due before December 31, 2022. According to the White House Press Secretary Karine Jean-Pierre, applications for relief are still being accepted.
The Biden Administration planned on beginning the student loan forgiveness process on October 23— according to prior court filings. The briefing on the injunction was due on October 25, ultimately putting a halt to the sequence.
The appeals court will next decide whether or not to issue the preliminary injunction that the group of states led by Republicans is seeking. The execution of Biden’s student loan forgiveness plan could go forward if the judge rejects the request.
“Although Biden’s forgiveness plan does not apply to me, I believe it is a valuable policy that will assist college students from the egregious burden of student loans,” said Yulia Pechenkina, a Political Science student at Stony Brook University, . “These loans have forced people into unstable financial circumstances when seeking to establish themselves through higher education.
“With that being said, the appeals court granting a stay on Biden’s plan is extremely concerning as it hinders students from low income families from receiving assistance,” Pechenkina, 21, added.
Umair Sheikh, 19, also a Stony Brook University student, has different thoughts on the pause.
“Biden’s student loan forgiveness plan is a terrible plan that forces the American taxpayer to pay for other people’s overpriced degrees. When people take out student loans, they sign a contract agreeing to pay the loans back and they should be required to do so,” Sheikh said. “Getting into excessive student loan debt is a choice that some people make, and they should be the ones to deal with the burden of that debt, not the American taxpayer. Biden’s student loan forgiveness plan is just a last minute attempt to buy some votes and save the democrat’s chances in the 2022 midterm elections.”
The loan forgiveness program would continue to be suspended during the legal procedures if the court issues an injunction. This might make the program’s future uncertain.
