Student loans: why is loan forgiveness suspended?
President Joe Biden did not expect one of its biggest initiatives to be put on indefinite hold. The student loan forgiveness program has been blocked and there are important details that all borrowers need to know in order to fully understand the situation. This is considered one of the biggest setbacks of the Joe Biden The administration was temporarily blocked by the courts. Take a look at what all borrowers need to know about this setback.
All those who have student debt were probably happy to be able to benefit from this initiative which was already due to start. Last August, the president said he would forgive until $20,000 for millions of people who have borrowed money through student loans. But there’s one major culprit that hasn’t happened yet, you can even take a wild guess and you’ll probably be right about it.
Who is responsible for suspending the loan cancellation program?
You guessed right, Republicans are responsible for the suspension of this program. They presented a large number of challenges to the policy which left her in jeopardy even as the application for the program was online. From the model of October, approximately 22 million Americans have applied for this loan forgiveness program. But the biggest setback came last Friday, just after President Biden presented the program with many students as witnesses.
A United States Court of Appeals temporarily blocked the program from moving forward immediately after that ceremony ended. In September, the attorneys general of the states of Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina sued the Biden administration in an attempt to stop this plan to write off hundreds of billions of dollars in student debt. It was believed that they did not have the legal status to argue this lawsuit.
But none of those states backed down from their lawsuit, they appealed and begged the court to block the plan. Consequently, the 8th United States Circuit Court of Appeals granted this emergency petition and left the Biden Administrationn without the power to begin canceling any student debt at this time. Until this lawsuit is settled, no student debt will be forgiven.