College Students seeking Federal Student Loan Forgiveness can now apply for student loan forgiveness up to $20,000 but their is no guarantee it will processed because six states filed a joint lawsuit against the Biden administration on September 29 to block the federal government’s plan to forgive up to $20,000 of federal student loans per person.
The states allege the administration overstepped its executive authority and was “not remotely tailored to address the effects of the pandemic on federal student loan borrowers.” The states also argued that the Department of Education was legally required to collect student loans and could not stop collecting without congressional approval.
The lawsuit, led by Arkansas Attorney General Leslie Rutledge, alleged that four of the states (Iowa, Kansas, Nebraska, and South Carolina) were harmed by the policy because they could not collect taxes on the loan relief. It also alleged that Missouri would lose revenue from loans it owned through the Federal Family Education Loan Program.
Of the six states, five have Republican trifectas and one (Kansas) has a divided government. All of the states except Iowa have Republican attorneys general.
If the forgiveness plan survives court challenges, it will cancel $10,000 in student loan debt per person for individual tax filers making less than $125,000 or married filers with less than $250,000 in income. Pell Grant recipients are eligible to have an additional $10,000 forgiven under the plan.
Editors Notes -
It appears the beta application was launched to help secure votes for the Mid-Terms and has no real value at this time other than getting ahead of the other applications for processing if in fact the Federal Government wins in court. We would not put it past any of the above states however to attempt to get this issue in front of the Supreme Court. You should be aware your student loans are growing larger every day you don't pay the interest on these loans and the loan processors are most likely counting those profits as you read this.
Educating ourselves, and our children in a manner that benefits society and the children is a much bigger issue. The loan forgiveness is nothing more than a political stunt, but to be sure it is very probable that anyone that can receive student loan forgiveness will take it and those that don't qualify will resent it. That is human nature.
https://studentaid.gov/manage-loans/forgiveness-cancellation/debt-relief-info