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☆ Supreme Court likely to rule that Biden student loan plan is illegal, experts say. Here's what that means for borrowers
▼ + stars: | 2022-12-05 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Student loan debt holders take part in a demonstration outside of the White House staff entrance to demand that President Biden cancel student loan debt. Long before the president acted, Republicans had criticized student loan forgiveness as a handout to well-off college graduates. watch nowWhy the Supreme Court may block forgivenessFor a number of reasons, Urman predicts the Supreme Court will rule against Biden. In addition, he said, the concept of loan forgiveness seems to run counter to their notions of individual responsibility. Such a politically fueled decision, however, is likely to further damage the public's perception of the Supreme Court, Urman said.

Average interest rates on refinanced student loans are up for every type of loan from two weeks ago, according to Credible. Federal student loan rates for the 2023-24 school year have risen by the most in nearly two decades years. While private student loan rates aren't directly affected by federal rates, they may go up because they don't have to stay as low to remain competitive with federal ones. 5-year variable student loan refinancing ratesRates on five-year variable undergraduate loans are up more than 1.5% from two weeks ago. For instance, you won't be eligible for the COVID-19-related student loan payment pause, currently in place through the end of August 2023, and federal student loan relief programs like Public Service Loan Forgiveness.

Rulings by lower courts in two challenges filed against the debt relief program have put Biden's policy on ice. Biden announced in August that the U.S. government would forgive up to $10,000 in student loan debt for borrowers making less than $125,000 a year, or $250,000 for married couples. The Congressional Budget Office in September calculated that the debt forgiveness program would cost taxpayers about $400 billion. Biden and his predecessor Trump had invoked the law to pause student loan repayments. Biden on Nov. 22 extended the repayment pause to no later than next June 30 to give the Supreme Court time to decide the case.

Circuit Court of Appeals on Wednesday declined to put that decision on hold, and the administration has said it plans to ask the U.S. Supreme Court to intervene. Biden announced in August that the U.S. government would forgive up to $10,000 in student loan debt for borrowers making less than $125,000 a year, or $250,000 for married couples. A view of the U.S. Supreme Court building on the first day of the court's new term in Washington, U.S. October 3, 2022. "We stand firm against the president's political exploitation of our student loan program just before an election," Peterson said in a statement. Biden on Nov. 22 extended the repayment pause to no later than next June 30 to give the Supreme Court time to decide the case.

☆ Supreme Court takes Biden student debt relief case, holds program for now
▼ + stars: | 2022-12-01 | by ( Dan Mangan | ) www.cnbc.com time to read: +1 min

US President Joe Biden speaks in the Eisenhower Executive Office Building in Washington, D.C., US, on Monday, Oct. 17, 2022. The Supreme Court said Thursday that it will hear arguments in a case challenging the Biden administration's student loan debt relief plan — but kept in place a lower appeals court's nationwide injunction that prevents that program from taking effect for now. The administration on Nov. 18 asked Justice Brett Kavanagh to lift an injunction against the student loan relief program, which would cancel hundreds of billions of dollars in federal debt. Kavanagh is the Supreme Court justice responsible for handling emergency applications arising from 8th Circuit cases. In its order Thursday, the Supreme Court said that consideration of the application to lift the injunction "is deferred pending oral argument."

☆ Meet a Republican who would have all $10,000 of his student loans canceled under Biden's plan but thinks it's an unfair policy
▼ + stars: | 2022-11-27 | by ( Juliana Kaplan | Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

He told Insider he wasn't surprised to see court challenges and worried for people who got refunds. Since Biden announced his plan at the end of August to forgive up to $20,000 in student debt for federal borrowers, the plan has been fraught with legal challenges. I think many of the court challenges have tried to shine light on that," Matthew said. "My generation, the millennial, Gen Z generation, are facing a significant problem with student-loan debt," he said. "This radical scheme must be eviscerated entirely, and Republicans will continue to support legal challenges to achieve that end."

In the past two months, student loan forgiveness has been the target of two high-profile lawsuits. Meanwhile, the Biden administration responded by extending the student loan payment pause yet again. What's happening to student loan forgiveness? Since the status of student loan forgiveness remains in the air, the Biden administration has extended the student loan payment pause until the Supreme Court makes a ruling. Select ranked SoFi Student Loan Refinancing and Earnest Student Loan Refinancing as some of the best companies for refinancing student loans.

☆ One day after asking the Supreme Court to save its student-loan forgiveness plan, the Biden administration started notifying applicants they've been approved
▼ + stars: | 2022-11-20 | by ( Isabella Zavarise | ) www.businessinsider.com time to read: +2 min

The Biden administration began notifying applicants who have been approved for student-loan relief. The notifications came after the administration asked the Supreme Court to save its debt relief plan. "Your application is complete and approved, and we will discharge your approved debt if and when we prevail in court," Cardona wrote. The filing asked the Supreme Court to lift a ruling handed down Monday by an appeals court that continued the pause on the debt-relief program. According to the Biden administration, around 26 million people applied for student-loan relief and 16 million of those applications have been approved.

☆ Student-loan borrowers who applied for Biden's debt relief shouldn't have to worry about living with 'crushing student loan debt as a result of a court challenge,' the nation's largest labor federatio
▼ + stars: | 2022-11-15 | by ( Juliana Kaplan | Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

President Biden's student loan forgiveness plan is currently paused after two court rulings. Over the past week, courts handed Biden's student-debt relief plan two major blows. That decision was in favor of the six Republican-led states who sued the debt relief, arguing it would hurt their states' tax revenues. "The AFL-CIO is extremely disappointed in the partisan legal effort to shut down the Biden administration's life-changing student loan relief. The federation's president, Liz Shuler, called on Biden to cancel student debt in the spring.

☆ Here's what happens now that Biden's student-loan forgiveness plan is officially blocked
▼ + stars: | 2022-11-14 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

A federal judge in Texas struck down Biden's student-loan forgiveness on Thursday. Now, however, the Education Department has stopped accepting applications. "We are disappointed in the decision of the Texas court to block loan relief moving forward," he added. "Amidst efforts to block our debt relief program, we are not standing down." Where student-loan forgiveness goes from hereShortly after the Texas ruling, the Education Department said the Justice Department had filed an appeal of the court's decision, which will go to the conservative 5th Circuit.

The injunction will put the program on hold pending an appeal of a lower court ruling that had allowed the debt relief program to go forward. The Biden administration could ask the Supreme Court to lift the injunction. "The injunction will remain in effect until further order of this court or the Supreme Court of the United States," a three-judge panel of the appeals court said in its ruling. Monday's decision by the appeals court came after six GOP-led states argued in a lawsuit that the loan relief program threatens their future tax revenues, and that the plan circumvents congressional authority. The ruling by 8th Circuit Court of Appeals in St. Louis is the latest in a series of legal challenges to President Joe Biden's plan to cancel up to $20,000 in student debt for millions of Americans.

The increase in college tuition and predatory lending have created a situation where, unless you’re fortunate to get a full-ride scholarship or come from a lot of money, students are vulnerable. Though Biden’s debt relief focused on federal student loans, there have been problems with private lenders as well, including the suit against student loan giant Navient. Research has shown that student loans increase access to financing and add to student diversity, which is great, but data also shows that women and people of color are disproportionately more likely to have debt. Student debt relief is one way to let people be people, first and foremost, and loanees second. But we need to do these things because we choose to and not because our college system is broken.

☆ The fate of Biden's student-loan forgiveness rests in the federal courts after neither party looks likely to gain a significant majority in the midterms
▼ + stars: | 2022-11-12 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

That means that the fate of President Joe Biden's student-loan forgiveness doesn't lie in the hands of lawmakers, but rather, the federal courts. "We are disappointed in the decision of the Texas court to block loan relief moving forward. Amidst efforts to block our debt relief program, we are not standing down," he added. The department also aims to roll out improvements to targeted loan forgiveness programs, like Public Service Loan Forgiveness, by next summer. "It must use all of its tools to fight to ensure that borrowers receive the debt relief they need."

☆ Biden Administration’s Student-Loan Relief Faces Mounting Legal Hurdles
▼ + stars: | 2022-11-11 | by ( Gabriel T. Rubin | ) www.wsj.com time to read: 1 min

The Biden administration faces a complicated legal path for jump-starting its mass student-debt cancellation plan after a federal judge in Texas blocked it on Thursday. In light of the ruling, the Education Department has stopped accepting applications for the program after nearly 20 million people submitted their income information in recent weeks. The administration immediately moved to appeal the decision and could file a motion that seeks to stay the Texas ruling for now. But even if that request were successful, the White House is still facing a roadblock in a separate case pending in a different jurisdiction.

☆ Biden's Education Department just shut the door on new student-loan relief applications following a court ruling
▼ + stars: | 2022-11-11 | by ( Sam Tabahriti | ) www.businessinsider.com time to read: +2 min

Biden's Education Department has stopped accepting applications for student-loan forgiveness. The announcement came after a US District judge ruled on Thursday that the debt relief program was illegal. "Courts have issued orders blocking our student debt relief program," according to a note on the forgiveness application page. The Education Department said in a statement following the ruling that the Department of Justice has filed an appeal. Cardona added: "Amidst efforts to block our debt relief program, we are not standing down."

☆ 3.5 million student-loan borrowers in California will get $1.3 billion in relief because the state won't tax Biden's debt cancellation, Gavin Newsom says
▼ + stars: | 2022-11-07 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Gavin Newsom asked the state to prep early to waive state taxes on student-debt relief. Some other states have already said Biden's student-loan relief will be subject to state taxes. "Californians who get student debt relief shouldn't be hit with taxes for it. This will provide up to $1.3 billion in tax relief for more than 3.5 million Californians," Newsom said in a statement. "We believe strongly that the lawsuits are entirely meritless, and that the debt relief plan is lawful and necessary," Cardona said.

Supreme Court nominee and U.S. Court of Appeals Judge Amy Coney Barrett on Capitol Hill in Washington, October 21, 2020. The Supreme Court on Friday rejected a second request to block the Biden administration's student loan debt relief program. For now, student loan forgiveness remains on hold from a challenge brought by six GOP-led states. Since the White House unveiled its loan relief plan in August to cancel $10,000 for most student loan borrowers, and up to $20,000 for those who received Pell Grants for low-income families, it has faced at least six lawsuits. Close to 26 million Americans have already applied for student loan forgiveness, and the Biden administration has approved 16 million of the requests, the White House said Thursday.

Two student loan borrowers, represented by the conservative Pacific Legal Foundation, are asking the Supreme Court to step in and block student loan relief. The borrowers claim they will face a hefty tax bill for unwanted relief. The suit was dismissed by a lower court and now an appeal is headed to the high court. "The claim is baseless for a simple reason: No one will be forced to get debt relief. Because opponents of the debt relief plan are trying anything they can to stop this program that will provide needed relief to working families."

☆ You should still apply for student loan forgiveness even while it's on hold
▼ + stars: | 2022-10-24 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +3 min

Late last week, a federal appeals court officially halted President Biden's student debt forgiveness. The plaintiffs argue the debt forgiveness would lead to a loss in tax revenue, causing economic harm to their states. Borrowers should apply for debt forgiveness as soon as possible, experts have previously told Make It. Back in August, the Biden Administration announced it was making good on its campaign promise to provide some relief to student loan borrowers. Check out:Borrowers react to student loan forgiveness: 'A huge weight has been lifted off of my shoulders'Over 700,000 borrowers no longer qualify for student loan relief—how to check if you're still eligibleStudent debt experts say $10,000 isn't enough specifically for Black borrowers—here's whySign up now: Get smarter about your money and career with our weekly newsletter

☆ President Biden says 22 million people have signed up for student loan forgiveness
▼ + stars: | 2022-10-21 | by ( Emma Kinery | ) www.cnbc.com time to read: +3 min

U.S. President Joe Biden speaks on the student debt relief plan in the South Court Auditorium at the Eisenhower Executive Office Building on October 17, 2022 in Washington, DC. President Joe Biden said 22 million people have registered for student loan relief since applications opened on Monday. Biden campaigned on a promise of student loan forgiveness. In August, he announced that federal student loan borrowers earning under $125,000 or households with less than $250,000 in income would be eligible for up to $10,000 in forgiveness. "In total more than 40 million Americans stand to benefit from this relief," Biden said.

U.S. President Joe Biden delivers remarks about the student loan forgiveness program from an auditorium on the White House campus in Washington, U.S., October 17, 2022. U.S. District Judge Henry Autrey in St. Louis said that while the six Republican-led states had raised "important and significant challenges to the debt relief plan," they lacked the necessary legal standing to be able to pursue the case. Autrey ruled an hour after Barrett denied without explanation an emergency request to put the debt relief plan on hold in the challenge brought by the Brown County Taxpayers Association. The plaintiffs in the case are represented by the Wisconsin Institute for Law & Liberty, a conservative legal group. Circuit Court of Appeals subsequently refused the group's request to block the debt relief program pending an appeal.

☆ Education Department could flag up to 5 million student loan relief applications for review — what to do if yours is among them
▼ + stars: | 2022-10-20 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

The U.S. Department of Education's application for student loan forgiveness, which officially went live earlier this week, is surprisingly easy to fill out. Borrowers just need to provide some basic contact information and their Social Security number. "There isn't any ID authentication process and no process to verify income, so the potential for fraud or benefit eligibility mistakes in this online form is massive," said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers. As a result, Buchanan said, "I understand why the Education Department has to audit many applications." Here's what to know about the extra step some borrowers will need to take.

☆ Supreme Court rejects request to block Biden student loan debt forgiveness program
▼ + stars: | 2022-10-20 | by ( Dan Mangan | ) www.cnbc.com time to read: +1 min

U.S. Supreme Court Associate Justice Amy Coney Barrett poses during a group portrait at the Supreme Court in Washington, U.S., October 7, 2022. The Supreme Court on Thursday rejected a request to block the Biden administration's student loan debt relief program. Justice Amy Coney Barrett denied the emergency application to block the program that had been filed by a Wisconsin taxpayers' group Wednesday. A notation of her denial on the Supreme Court's docket does not indicate that she referred the application to the entire Supreme Court before she rejected the request. The loan relief plan, which is set to begin taking effect this weekend, will cancel up to $20,000 in student debt for millions of borrowers.

☆ U.S. Supreme Court's Barrett declines to block Biden student loan relief
▼ + stars: | 2022-10-20 | by ( Andrew Chung | ) www.reuters.com time to read: 1 min

Oct 20 (Reuters) - U.S. Supreme Court Justice Amy Coney Barrett on Thursday declined to block President Joe Biden's plan to cancel billions of dollars in student debt in a challenge to the policy's legality by a Wisconsin taxpayers organization represented by a conservative legal group. Barrett, in a brief order, denied an emergency request to put on hold the debt forgiveness plan announced by Biden in August in the challenge brought by the Brown County Taxpayers Association. A lower court threw out the group's lawsuit for lacking the necessary legal standing to sue because it could not show that it was personally harmed by the loan relief. Register now for FREE unlimited access to Reuters.com RegisterReporting by Andrew Chung in New York; Editing by Will DunhamOur Standards: The Thomson Reuters Trust Principles.

☆ Supreme Court asked to block White House's student debt relief plan
▼ + stars: | 2022-10-20 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSupreme Court asked to block White House's student debt relief planThe Supreme Court was asked to block the Biden administration's student loan relief program, which is set to take effect this weekend. CNBC's 'Squawk Box' team breaks down the details.

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