WASHINGTON, D.C. (CNN) – A legal challenge to President Biden’s student loan forgiveness program has millions of people wondering, what now?
The White House previously identified this week as the soonest some borrowers could see their debt canceled. But a federal appeals court put President Joe Biden’s student loan forgiveness program on pause for now.
Friday’s move barred the administration from canceling loans while the court considers a legal challenge from six Republican-led states.
So, what does it mean for the more than 20 million people who’ve applied for relief so far?
The administration said Sunday was the earliest day it would start discharging loans. So people will now have to wait a little longer while the program’s fate is decided.
Cody Hounanian is the executive director of the Student Debt Crisis Center, a nonprofit focused on ending the student debt crisis, who is also waiting for some of his debt to be forgiven.
Hounanian said, “It’s not gonna erase my entire debt, but it’s a third of my student loan debt and it one opens up the door, hopefully for the ability to purchase a home, invest in myself in a different way.”
The program would dismiss up to $10,000 in debt for eligible applicants, up to $20,000 if they received Pell grants.
So, what should you do if you qualify?
The White House is still encouraging people to apply at http://www.studentaid.gov. And the better business bureau continues to remind you to beware of ongoing scams.
The six GOP-led states that requested a preliminary injunction argue that President Biden doesn’t have the legal authority to wipe out the debt.
Meanwhile, lawyers for the government argue that Congress gave the Secretary of Education the power to discharge debt in a 2003 law known as the Heroes Act while George Bush was in office.
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