See the screenshot below? This is what you get if you try and go apply for student loan debt relief. The ruling was declared to be illegal and unconstitutional. That's what former President Donald Trump-appointed Texas US District Judge Mark Pittman said during a recent ruling on loan forgiveness. Biden‘s plan is to forgive up to $20,000 in student debt for federal borrowers making under $125,000. How many borrowers from Killeen, Texas could this ruling potentially affect, if it stands?

Department of Education, Canva
Department of Education, Canva

Here's What We Know

The lawsuit was filed by Myra Brown and Alexander Taylor, two student borrowers who decided to sue because they were not included in the debt relief pool due to not qualifying. One student did not receive a Pell grant, making them only eligible for $10,000. The other students loans were not federally funded. They were commercially held loans, making those loans ineligible altogether.

He Said, She Said

They argued that the Administrative Procedure Act's Notice-and-Comment Procedure was violated. The claim is that the plan was issued without going through the typical rulemaking process.  According to reporting, the Department of Education will be appealing this ruling. Keep in mind, this is not the only suit out there attempting to block the school loan forgiveness effort.

Amid all of these lawsuits, currently there is a pause in student loan payments being made, set to expire Dec. 31, 2022. The back-and-forth on this topic has been ongoing on all sides, Biden said in a recent statement,

"26 million borrowers have already applied for debt relief and as of last week, the education department had approved 60 million of them to have their loans discharged."

We Are All Going To Be Following This

Biden also says that he in fact does have the authority to institute the program. An  unconstitutional exercise of Congress legislative legislative power and must be vacated is where the things stand now. An appeal is already in the works. Earners who earned less than $125,000 in 2020 and 2021,  and couples or head of household earners who earned less than 250,000 are eligible for the up to $20,000 forgiveness in debt.

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Did you apply for Federal Student Loan Debt Relief? I know I sure did. Download our free app and send me a message. Let me know your thoughts about all of this. K-Lew out!

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