Biden’s Student Loan Forgiveness Held Up in Court

Although politicians are not known for keeping their campaign promises, President Biden managed to organize a simple and comprehensible student loan forgiveness application. The applications for Biden’s student loan forgiveness, which promise $10,000-$20,000 in debt relief to individuals making less than $120,000 and families making less than $250,000, opened this month. Yet, whether that money will ever reach your student loan debt is up to the Eighth Circuit Court of Appeals.

Six republican states filed the suit in district court, arguing the debt relief program injures state student loan companies who often carry the debt from the federal loan system. Standing is the key issue here. The district court judge dismissed the case for lack of standing, which requires a demonstrable injury and ability for redress, arguing that the injury stated was too “speculative.”

The states appealed to the Eighth Circuit, which has currently blocked further progress in student loan forgiveness processing, until it analyzes the motion. The court could decide to further delay processing by issuing a temporary injunction, or dismiss the case for lack of standing once again.

Likely, some resolution to this case will come soon. However, it is definitely not the end of republican efforts to upend Biden’s debt forgiveness.