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Legal Challenges to Student Loan Forgiveness Loom

“The Biden administration and Republican opponents of mass student debt cancellation appear headed for a legal confrontation with hundreds of billions of dollars at stake just weeks before the November midterm elections,” the Wall Street Journal reports.

“GOP state attorneys general, conservative groups and federal lawmakers are laying the groundwork to challenge President Biden’s executive action to cancel up to $20,000 of debt for most of the 40 million people with federal student loan debt. Would-be plaintiffs can’t take action until the administration makes a formal move toward cancellation, such as releasing an application for loan forgiveness or wiping out the balances of a first batch of borrowers.” 

“The Education Department has said it would unveil an application for borrowers to register their income and Pell Grant status, two factors that determine relief eligibility, by early October.”

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