A judge in Texas ordered Biden’s student loan forgiveness program unconstitutional. This comes after more than 40 million eligible borrowers have applied, more than 26 million people have signed up, and over 16 million applications have been approved. What now?
For one Biden will try to overrule the judge’s decision by appealing. Biden is relying on a law passed in 2003 by Congress. The law is called the Higher Education Relief Opportunities for Students Act or the HEROES Act.
That law empowered the education secretary to waive or modify any federal student loan programs as deemed necessary “in connection with a war or other military operation or national emergency.” Former president Donald Trump had formally declared the COVID-19 pandemic a national emergency in March 2020.
Though the judge in Texas said the law doesn’t mention loan forgiveness.
So you’ve applied, and you’re probably wondering what happens to your application now. As of right now nothing. It’s on hold, even if you were already approved.
“For the 26 million borrowers who have already given the Department of Education the necessary information to be considered for debt relief — 16 million of whom have already been approved for relief — the Department will hold onto their information so it can quickly process their relief once we prevail in court,” White House press secretary Karine Jean-Pierre said in a statement.
You haven’t applied yet? As of right now, applications are on hold and the deadline is still set for December 31, 2023. Biden is probably hoping the hold will be off well before the deadline, but he hasn’t made a statement yet. Biden has made an announcement regarding the pause on repayments. He announced on November 22 that they are extending the pause on payments until June 30, 2023.
“It isn’t fair to ask tens of millions of borrowers who are eligible for relief to resume their student debt payments while the courts consider the lawsuit,” he said in a video posted to social media.
What do you think? Is it unconstitutional?
Source BuzzFeedNews
