Judge rejects attempt to halt student loan forgiveness plan

castle. LOUIS (AP) — A federal judge on Thursday rejected a Republican-led six-state effort to thwart the Biden administration’s plan to write off student loan debt for tens of millions of Americans. Six states — Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina — claimed that “courts had no jurisdiction to hear this case.” . Democratic President Joe Biden announced in August that his administration would forgive up to $20,000 in education debt for a staggering number of borrowers. . The announcement quickly became a major political issue ahead of the November midterm elections. Earlier on Thursday, Supreme Court Justice Amy Coney Barrett dismissed an appeal from a group of Wisconsin taxpayers seeking to suspend the debt relief program. Association. The group wrote in a Supreme Court filing that the urgent order was needed because the administration could begin canceling outstanding student debt from Sunday. Manage federal student financial aid programs.” According to court documents, the Higher Education Relief Opportunities for Students Act 2003 (HEROES Act) allows the Minister of Education to waive or modify federal student loan terms in case of war or national emergency. The Congressional Budget Office says the program will cost about $400 billion over the next 30 years. At a hearing on October 12, Nebraska Attorney General James Campbell told Autrey that the administration was acting outside the authorities in a way that costs millions of dollars. Households earning less than $125,000 or less than $250,000. Generally, Pell Grant beneficiaries with greater financial need will receive an additional $10,000 in debt relief. Missouri Attorney General Eric Schmidt’s spokesman Chris Nouel said the plan would create greater economic hardship for working-class families. .” Faced with a tough re-election race, many Democrats have strayed from the plan. The Justice Department said the law would allow Biden to reduce or eliminate student loan debt in the event of a national emergency. Republicans argue that the administration is misinterpreting the law, in part because the pandemic is no longer classified as a national emergency, and Justice Attorney Brian Netter told Autry that the aftermath of the COVID-19 pandemic still has ramifications. said to be causing He said student loan defaults have soared over the past two and a half years. Current undergraduate students are eligible if the loan was paid before July 1. According to the administration, 43 million borrowers could be forgiven some of their debt and 20 million could be completely relieved of their debt.
#Judge #rejects #attempt #halt #student #loan #forgiveness #plan

Leave a Comment

Your email address will not be published. Required fields are marked *