President Joe Biden's student debt relief program just hit a speed bump. A federal judge temporarily blocked the president's plan in a federal appeals court Friday. The administration just started accepting applications a few days ago.Some parents and students are worried about the debt not being forgiven, as they anxiously await the decision."A lot of us were kind of hoping that we can get a little cut with that," recent University of Cincinnati graduate, Audrey Knowles said.As Knowles enjoys some time off from school, she's keeping a close eye on the temporary block of President Biden's Student Loan Forgiveness Program."Thankfully the loans have been pushed back for some time because of COVID which has been nice, but I still have a lot of debt to pay off and I don't want to be stuck with that burden," Knowles said.Biden's plan would make 43 million borrowers eligible for some debt forgiveness, with 20 million who could get their debt erased entirely, but now that's up in the air."It's actually only a temporary block that's long enough for the court to decide whether it wants to impose a longer temporary block," professor of law at the Chase College of Law at Northern Kentucky University, Ken Katkin said.A federal appeals court Friday blocked the program, issuing a temporary stay after six states filed a lawsuit against the plan. Katkin is urging everyone not to panic."It's extremely likely that if this matter is not yet resolved, by New Year's Day, President Biden will extend the period of time where students don't have to make any debt payments," Katkin said.The White House promised not to clear any debt before October 23, as it battled the legal challenges. Forgiveness was expected to begin as soon as mid-November which many people were banking on. "It's a little worrisome because I'm trying to plan my finances and figure out my near future so not really knowing how much I'm going to be stuck spending every month or what my budget is going to look like is a little concerning," Knowles said.Borrowers are still able to apply for federal student loan forgiveness while the appeals court reviews this challenge at studentaid.gov.
President Joe Biden's student debt relief program just hit a speed bump. A federal judge temporarily blocked the president's plan in a federal appeals court Friday. The administration just started accepting applications a few days ago.
Some parents and students are worried about the debt not being forgiven, as they anxiously await the decision.
"A lot of us were kind of hoping that we can get a little cut with that," recent University of Cincinnati graduate, Audrey Knowles said.
As Knowles enjoys some time off from school, she's keeping a close eye on the temporary block of President Biden's Student Loan Forgiveness Program.
"Thankfully the loans have been pushed back for some time because of COVID which has been nice, but I still have a lot of debt to pay off and I don't want to be stuck with that burden," Knowles said.
Biden's plan would make 43 million borrowers eligible for some debt forgiveness, with 20 million who could get their debt erased entirely, but now that's up in the air.
"It's actually only a temporary block that's long enough for the court to decide whether it wants to impose a longer temporary block," professor of law at the Chase College of Law at Northern Kentucky University, Ken Katkin said.
A federal appeals court Friday blocked the program, issuing a temporary stay after six states filed a lawsuit against the plan. Katkin is urging everyone not to panic.
"It's extremely likely that if this matter is not yet resolved, by New Year's Day, President Biden will extend the period of time where students don't have to make any debt payments," Katkin said.
The White House promised not to clear any debt before October 23, as it battled the legal challenges. Forgiveness was expected to begin as soon as mid-November which many people were banking on.
"It's a little worrisome because I'm trying to plan my finances and figure out my near future so not really knowing how much I'm going to be stuck spending every month or what my budget is going to look like is a little concerning," Knowles said.
Borrowers are still able to apply for federal student loan forgiveness while the appeals court reviews this challenge at studentaid.gov.
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