Judge Declares Biden-Harris Administration's Federal Student Loan Forgiveness Unlawful under Constitution
The student loan forgiveness program, a significant economic and political initiative, is currently in a state of uncertainty. The Biden-Harris administration's Student Debt Relief Plan, based on the Higher Education Relief Opportunities for Students Act (HERO Act, H.R. 1412), has faced numerous legal obstacles.
As of now, over 26 million borrowers have applied for the loan forgiveness program without approval, and 16 million applications have been approved. However, the program's future remains uncertain as it awaits resolution of the Northern District of Texas decision and other ongoing lawsuits.
The Department of Education has been required to demonstrate clear authorization from Congress for the student loan forgiveness program, but has not been able to prove it. This has led to a ruling against the program by Judge Pittman, who cited the lack of clear authorization from Congress as the reason for his decision.
The Job Creators Network Foundation, a conservative advocacy group, filed the lawsuit against the student loan forgiveness program, arguing 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 student loan forgiveness program.
The administration, contending that COVID-19 qualifies as a national emergency, has signaled its intention to continue the COVID-19 Public Health Emergency (PHE) declaration. This could potentially lead to an extension of the moratorium on student loan repayments, which is currently set to expire on January 1, 2022.
The administration's final extension of the student loan moratorium was expected to end in December 2021. The Department of Justice has appealed the decision against the student loan forgiveness program, and it is unclear whether the administration's decision to halt the moratorium has changed.
Borrowers are likely to be expected to start paying their loans at the end of this year unless President Biden takes action. AG Study Guide has previous coverage of the Student Debt Relief Program and moratorium developments. For the latest updates, we encourage readers to stay tuned.
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