Continued Legal Challenges to Biden’s Student Debt Forgiveness Plan

On August 24, the Biden Administration announced and laid-out its plan to cancel up to $20,000 in debt for Pell Grant recipients with loans held by the Department of Education, and up to $10,000 in debt cancellation for non-Pell Grant recipients. Since then, the U.S. Court of Appeals for the Fifth Circuit as well as the Eighth Circuit has blocked the Department of Education for forgiving loans under the program. The Biden Administration plans to appeal both rulings and Department of Education Secretary Cardona issued a recent press release in response to the District Court’s ruling. The announcement on August 24 also called for an extension to the pause on student loan repayment through December 31, 2022. Student debt relief advocates are now calling for the pause to be extended until the program begins forgiving loans. House Republicans sent a letter to the White House Office of Management and Budget Director Shalanda Young regarding the implementation and cost analysis of the student loan overhaul.