US Supreme Court to consider federal student loan forgiveness dispute in February News
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US Supreme Court to consider federal student loan forgiveness dispute in February

The US Supreme Court Thursday agreed to consider whether President Biden’s student loan forgiveness plan is unlawful in February 2023. In the Supreme Court’s brief order, Justice Brett Kavanaugh also declined to vacate an injunction blocking the plan from taking effect while litigation pends.

On Wednesday, the US Court of Appeals for the Fifth Circuit affirmed the United States District Court for the Northern District of Texas’ determination that Biden’s program is unlawful and denied the administration’s request to stay the lower court’s injunction. As a result of the ongoing litigation, the Biden administration announced it would continue its pause on all federal student loan payments until either June or until the Supreme Court makes a decision on this program.

Since the announcement of the plan in August, a myriad of lawsuits have been brought by multiple states challenging the program. For federal student loan borrowers making less than $125,ooo per year, the plan would forgive $10,000 in non-Pell Grant and $20,000 in Pell Grant federal student loans.