Student loans

Supreme Court rejects blocking Biden pardon plans, so why is he still on hiatus?

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The Supreme Court has now dismissed another emergency request for block federal student loan forgiveness. Since the announcement of Biden’s move to forgive $10,000 in student loans for most borrowers (and up to $20,000 for those who received Pell Grants), six lawsuits have threatened the plan.

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On November 1, Judge Amy Coney Barrett dismissed an attempt to block the program launched by the Pacific Legal Foundation on behalf of two borrowers in Indiana, CNBC reported. Both plaintiffs claimed they would suffer financial harm if a debt was forgiven because they would incur state taxes on the canceled student loan debt. A similar request was denied on October 20.

Although those attempts had little effect, the student loan forgiveness is still pending due to a challenge by six Republican-led states. The six states — Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina — asserted the lack of congressional authorization for the administration’s action. CNBC reported that the Eighth Circuit Court of Appeals issued a stay and suspended the program while it considers the appeal.

About 26 million Americans have applied for student loan forgiveness, and the Biden administration has approved 16 million of those applications, the White House announced Nov. 3. until further notice, according to CNBC.

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Abby Shafroth, director of the National Consumer Law Center’s Student Loan Borrower Assistance Project, told The Hill that borrowers will “soon have a decision” from the Eighth Circuit. Legal experts also said the court’s decision could be key to whether the Biden administration will be allowed to provide relief to federal borrowers.

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This article originally appeared on Student loans: Supreme Court rejects blocking Biden’s pardon plans, so why is he still on hiatus?