DLNews Education:

As a result, many of the President's proposed plans to provide a solution to student loans are now being delayed or withdrawn. With the pause in repayment that the pandemic created in late fall, now is the time to apply for relief before it is too late.

FFEL loans are no longer included in Biden's forgiveness plan

The federal government is trying to find a way to provide relief for borrowers with Federal Family Education Loans. These loans were the mainstay of the federal student loan program until 2010. FFEL loans are not included in President Biden's debt forgiveness plan.

While the federal government is working to find a solution, the case is being challenged by several lawsuits filed by conservative groups and the state attorneys general of several states. They argue that the White House's debt cancellation program would financially burden the state's loan servicer.

According to a Biden administration official, the updated policy will impact at least 770,000 FFEL loans. This includes commercially held FFEL loans and borrowers who consolidate their FFEL loans into Direct Loans. The new rules do not apply to privately held FFEL loans. However, the Education Department still plans to offer some relief to borrowers with these loans.

Members of Congress oppose the program.

Many Congress members oppose the plan announced by President Biden. While Democrats have generally supported the President's plan, Republicans have argued that canceling student loans for tens of millions of Americans is unfair. The program was designed to provide debt forgiveness for low-income borrowers and nonprofit employees. However, some states are worried that private entities could use it. This has led the Biden administration to request that the U.S. Supreme Court review the student loan forgiveness plan.

Six Republican-led states are suing the Biden Administration over its student loan forgiveness plans. Those attorneys and officials say the program is unfair and unlawful and that it will hurt the state's finances. These claims were echoed by several business-oriented groups, as well as by a group of conservative attorneys. In addition, attorneys general from Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina have filed a lawsuit against the Biden Administration's plan. While the suits are being considered, the federal appeals court in St. Louis has temporarily blocked the program.

If the Supreme Court strikes down Biden's plan

The Supreme Court's nine justices have agreed to take on the student loan challenge and will hear oral arguments on February 28, 2023. If the Supreme Court strikes it down, it will be bad news for borrowers. The President's plan promises to forgive up to $10,000 in federal student loans for qualifying borrowers.

The program is a response to the growing number of borrowers who are struggling to pay their debts. While the debt relief plan could benefit nearly 10 million additional borrowers over the next 30 years, some limitations exist.

The Congressional Budget Office estimates the program will cost $400 billion over the next three decades. However, the federal government has already approved 16 million borrowers for student loan forgiveness.

 Must Read click the link below:

UPDATE WHITE HOUSE FACT SHEET:

26 Million People in All 50 States Applied or Were Automatically Eligible for One-Time Student Debt Relief