Federal judge blocks student-loan forgiveness

Get Our Email Newsletter
The companies, people and issues shaping business in Madison and the Capital Region.

A U.S. judge in Texas blocked President Joe Biden’s plan to provide millions of borrowers with up to $20,000 apiece in federal student-loan forgiveness, according to an Associated Press report. The program was already on hold as a federal appeals court in St. Louis considers a separate lawsuit by six states challenging it. District Court Judge Mark Pittman, an appointee of former President Donald Trump based in Fort Worth, said the program usurped Congress’s power to make laws. The debt forgiveness plan would cancel $10,000 in student loan debt for those making less than $125,000 or households with less than $250,000 in income. Pell Grant recipients, who typically demonstrate more financial need, would get an additional $10,000 in debt forgiven.

The administration disagreed with the ruling and the Department of Justice has filed an appeal. To date, 26 million people had applied for debt relief, and 16 million people had already had their relief approved.

Digital Partners