Peter Gondre

The Biden backed Student Loan Forgiveness Program started accepting applications on October 17, and will be processing applications up until the loan payment pause ends on June 30, 2023. The Department of Education recommended applying no later than mid-November to ensure the applications are reviewed in time. 

The Student Loan Relief Program will provide $20,000 in relief for Federal Pell grant recipients and $10,000 for non-recipients. Applicants must be making below $125,000 annually or $250,000 in a shared household. 

According to the White House, currently attending students are eligible to receive student loan relief, but it has to be from federal loans taken out before June 30, 2022.  If the student is a dependent, eligibility will be considered based on their parents’ income.

Several lawsuits have been filed by GOP politicians and taxpayer groups slowing down the dispersal of payments. Notably, representatives from 6 GOP states, Nebraska, Missouri, Arkansas, Iowa, Kansas, and South Carolina, filed suit against the program in late September, 2022. The lawsuit sites budget concerns, inflation, and unfairness for those who are not yet in college or already paid their loans. 

According to AP news, The suit was denied by a federal judge for not having enough evidence of direct harm to those states. But the representatives appealed the suit with the condition that no money could be handed out while the appeal is active. The relief program is still being roadblocked at time of writing. 

Other lawsuits have been filed against the program since then and brought to the  Supreme Court, where they have been quickly denied. The most recent case was from a conservative legal group, Pacific Legal Foundation. All of these suits have been filed ahead of the midterm election on November 8.