U.S. District Judge Mark Pittman ruled in favor of two plaintiffs who sued the government after they failed to qualify to have $10,000 in student loans forgiven. Judge Mark Pittman declared the student loan forgiveness plan unconstitutional. 26 million Americans have applied for loan forgiveness, and 16 million have already been approved while applications have now been put on hold.
Then this past Monday a federal appeals panel ruled a preliminary injunction on the $400 billion plan affecting millions of borrowers. The ruling by the three-judge panel from the St. Louis-based Eighth US Circuit Court of Appeals came four days after Judge Mark Pittman (mentioned above) ruled that Biden overstepped his executive authority in announcing the plan under the federal HEROES Act of 2003.
The Texas case was appealed and the Biden administration is now likely to appeal the 8th Circuit ruling as well.
Biden’s plan would cancel up to $10,000 in student loan debt for those making less than $125,000 per year or households making under $250,000 per year in income. Pell Grant recipients, who typically demonstrate more financial need, would get up to $20,000 in debt forgiven.
