Biden-Harris Administration's student debt relief program declared unlawful by federal judge
The U.S. Department of Justice has appealed a recent ruling against the student loan forgiveness program, defending its legality and implementation. The decision was made in response to a lawsuit filed by the Job Creators Network Foundation, a conservative advocacy group.
Judge Pittman ruled that the program lacks clear authorization from Congress. The ruling came after the Biden-Harris administration's final extension of the moratorium on student loan repayments, which is set to expire on January 1, 2022.
As of now, 16 million applications for the loan forgiveness program have been approved, and over 26 million borrowers have applied without approval. However, the administration's decision to halt the moratorium means that borrowers are likely to be expected to start paying their loans at the end of 2021 unless President Biden takes action.
The administration contends that COVID-19 qualifies as a national emergency, allowing the Secretary of Education to waive federal student loan repayments under the HERO Act. The Job Creators Network Foundation, on the other hand, argued that the administration violated federal procedures by denying borrowers the ability to provide public comment before the program was launched. They also asserted that the administration lacked proper legislative authority over the program.
The group representing the borrowers in the lawsuit claimed that some were ineligible to receive full or partial relief from the program. The Department of Education is 'disappointed' in the ruling against the student loan forgiveness program, with Secretary Miguel Cardona stating that the Department of Justice has appealed the decision.
The administration has not provided any signs that their decision to halt the moratorium has changed. However, given the ongoing COVID-19 Public Health Emergency (PHE) declaration and the possibility of another extension, it may not be surprising if the moratorium is again extended in the near future.
For more information on the Student Debt Relief Program and its developments, refer to the AG Study Guide's previous coverage. The Biden-Harris administration maintains that the Student Debt Relief Plan can be implemented under the Higher Education Relief Opportunities for Students Act (HERO Act, H.R. 1412).
As the situation continues to unfold, borrowers are encouraged to stay informed and prepared for any potential updates regarding the student loan forgiveness program and the moratorium on repayments.
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