Official announcements from the Biden administration or relevant federal agencies

Eighth Circuit Blocks Biden's $150 Billion Student Loan Forgiveness Plan

Aug 9, 2024, 08:48 PM

The Biden administration's student loan forgiveness plan, which aimed to cancel over $150 billion in student debt for nearly 5 million Americans, faces significant legal challenges. A federal appeals court, specifically the Eighth Circuit, has extended an order blocking the implementation of the plan, which was designed to lower monthly payments and accelerate loan forgiveness for millions of borrowers. The court's decision represents a major setback for the administration's efforts to provide relief to borrowers, including public servants such as teachers. Despite the administration's announcement of $1.2 billion in forgiveness for public service workers, the broader debt cancellation plan, described as a half-a-TRILLION dollar initiative, remains in limbo.