Student Loan Forgiveness Plan on Hold; No More Applications Accepted Until Courts Decide
Florida - Monday November 14, 2022: A Federal Judge in Texas struck down the Biden Administration’s Student Loan Forgiveness program last Thursday.
U.S. District Judge Mark Pittman, a Trump appointee, ruled that the program was unconstitutional because it usurped Congress’ power to make laws.
Student Loan Expert and Senior Economist at Lending Tree Jacob Channel says the decision leaves the program and millions of borrowers in limbo.
"He seems to believe that the constitution doesn’t enable the president to have this kind of power, at least via executive action," said Channel. "He believes its unconstitutional and it should not be allowed to go forward.”
A website to apply for loan forgiveness has already been set up and 26 million student loan borrowers across the nation, and in Florida, have already applied, but as a result of the ruling, all that has been put on hold and no more applications are being accepted.
The Biden Administration has appealed the ruling but “even if appealed," said Channel, "you’re not going to see any relief in your account for the foreseeable future until all these issues are worked out.”
Channel says student loan borrowers will have to be patient, he expects this case may end up in the Supreme Court. “This is one issue where its tough to say that people need to have patience but that’s just sort of the way the cookie crumbles. We could end up at the Supreme Court and given that it’s a six-three conservative majority, the odds may not be particularly in the Biden Administration’s favor.”