10/29/2022
Biden believes that despite ongoing legal challenges, borrowers will begin to receive student loan forgiveness under his signature one-time cancellation initiative within two weeks.
Under Biden’s one-time student loan forgiveness plan, up to 40 million borrowers with government-held federal student loans will be eligible for up to $20,000 in student loan cancellation.
Qualifying single and married-filing-separately borrowers must have earned under $125,000 in either 2020 or 2021, or $250,000 if married-filing-jointly. Borrowers who never received a Pell Grant can receive $10,000 in student loan forgiveness.
But a series of legal challenges has threatened the initiative. Several lawsuits brought by Republican state leaders and conservative legal organizations were dismissed in recent weeks. But a coalition of Republican-led states appealed a dismissal to the 8th Circuit Court of Appeals, which temporarily halted the student loan forgiveness program last Friday while it considers legal arguments. The court could issue a ruling any day on whether to allow the administration to proceed with the initiative.
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