The Department of Education has stopped accepting applications for its one-time student loan debt forgiveness program after negative court rulings. Last Thursday, a U.S. District Court in Texas declared the program unlawful and vacated it. And on Monday, the Eighth Circuit--which had previously imposed an administrative stay--issued a nationwide injunction prohibiting debt discharges under the plan. The Department is still defending the program, but it's on hold for now.
Find more information about the Texas decision here (NPR news story). Find the court's opinions here (District Court) and here (Eighth Circuit).
The next question may be whether the administration will extend the Covid-19 payment pause, which is currently scheduled to end on December 31st.
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