NEWSLETTERS
Biden’s Student Debt Relief Blocked by the Court
November 22, 2022
On November 10, 2022, a federal district judge in Texas struck down President Biden’s student loan forgiveness program. This was followed by the 8th US Circuit Court of Appeals issuing an emergency order blocking the program on November 14th. President Biden’s student debt relief program, previously announced on August 24, 2022 had included:
- Another extension of the pause to repay student loans through December 31, 2022. This is to allow time for students to enroll in the debt relief programs, if eligible. Student loan payments will resume again in January 2023.
- Debt relief of up to $20,000 for Pell Grants or $10,000 for Non-Pell Grants for individuals with income less than $125,000 if single or $250,000 if married filing jointly.
- Debt relief of all student debt for those who have worked in public service for 10 years or more (even if not consecutively).
- Proposed new student loan system, which changes repayment requirements for student loans and shortens the term for which loans can qualify for forgiveness.
The Biden administration has appealed to the US Supreme Court to lift the federal appeals court order, but unless the US Supreme Court steps in, the US government cannot discharge any student loans.
While the Biden administration is going through the litigation process in an attempt to lift the ban, President Biden announced on November 22, 2022 a further extension to the student loan repayments. Previously extended through December 31, 2022, these are now extended to 60 days after the lawsuit is resolved. If the lawsuit has not been resolved by June 30, payments will resume 30 days after that.
To read about these topics in more detail and identify whether you may benefit from this student debt relief plan our full article can be found here.
We appreciate the opportunity to work with you and are available to answer any questions or concerns you may have.
Gatto, Pope & Walwick, LLP
Certified Public Accountants