A student walks through the Library Mall at the University of North Texas in Denton in March. A federal judge in Texas last month struck down the Biden administrations plan for student debt relief. The U.S. Supreme Court says it will take up the case in February or March., our daily newsletter that keeps readers up to speed on the most essential Texas news.
The delay is the latest in the uphill battle for student loan forgiveness, a program that would have given thousands of dollars in relief to more than 40 million borrowers.that the forgiveness program was “unlawful” because Biden did not follow federal procedures to allow for public comment prior to the policy’s announcement.
Biden announced the plan in August. People who earn over $125,000 a year are ineligible for the forgiveness program, and the amount for applicants is limited to $10,000. However, recipients of Pell Grants, which are intended for low-income students, are eligible for up to $20,000 in relief. Texas has more than 2.3 million Pell Grant recipients.
Those borrowers disagreed with the program’s eligibility criteria, and the lawsuit alleged that they could not voice their disagreement. The 8th U.S. Circuit Court of Appeals then temporarily halted the program that same month.