CHICOPEE, Mass. (WWLP) – More legal maneuvering for President Biden’s student loan forgiveness plan as opponents continue to try and block the relief plan.
The application website is officially blocked after a federal judge in Texas struck down the plan, the decision following the dismissal of a challenge brought by six republican states. Both the Texas Federal Judge and the six challenging states say the President is overstepping his authority with the plan.
The lawsuit was quickly rejected after a separate federal judge said it lacked legal standing. They immediately appealed the decision and were granted a stay on the plan, so no debt forgiveness could roll out until the appeal has concluded.
Despite all that, the application site remained open until this weekend, when the Texas judge stepped in saying “In this country, we are not ruled by an all-powerful executive with a pen and a phone.” One Harvard Law professor called the 26-page decision “wrong and weird.” Following that, the Education Department stopped encouraging borrowers to apply and pulled the site.
Some 26 million borrowers applied for forgiveness already. About 16 million were approved, but no repayments have been made. The Education Department will hold those applications, awaiting the result of a number of appeals. We’re on the hook to start monthly payments again on January first.