The department has opened applications for the student loan forgiveness program; however, it will not begin processing applications until the official website launches later this month. Groups continue to challenge the legality of the program.
10/20/2022 11:45 A.M.
2 minute read
The Biden administration has opened applications for the student loan forgiveness program in a new beta testing period that began at the end of last week, according to CNN. The new rollout allows applicants to sign up before the website is formally unveiled at the end of this month.
According to a spokesperson for the Biden administration, borrowers will not need to reapply for the program if they submit their application during this beta testing period, CNN reports. However, the applications will not be processed until the site has officially launched later this month.
Legal Challenges to Program Ramp Up
Recently, the Cato Institute filed a lawsuit against the U.S. Department of Education (DOE), arguing that neither the DOE nor the Biden administration has the authority to cancel student loans without approval from Congress.
The suit, filed in a Kansas federal court, says that “by providing across‐the‐board loan‐forgiveness, the Biden scheme completely—and unlawfully—undermines Congress’s goal in enacting the Public Service Loan Forgiveness program,” according to a news release from the Cato Institute.
The lawsuit is one of many to challenge the student loan forgiveness program.
In other news, a case from the Wisconsin Institute for Law and Liberty (WILL) challenging the Biden administration’s student loan relief plan has been appealed and filed as an emergency request to U.S. Supreme Court Justice Amy Coney Barrett to block the student loan relief plan.
Just a day after it was submitted, Barrett denied the emergency request, The Hill reports. Barrett is charged with handling such emergency requests from Wisconsin, and appeared to have made the decision alone rather than sending it to the full court, according to the article.
A federal judge dismissed a Wisconsin group’s legal challenge to the plan on Oct. 6, determining the plaintiff did not have standing as a taxpayer. That dismissal remains in effect with Barrett’s decision, and the appeal remains in a lower court, according to The Hill.
Six state attorneys general have filed suit against the Biden administration for overreach of its executive powers in the student loan forgiveness plan, ACA previously reported.
Additionally, a small-business group, the Job Creators Network Foundation, filed a lawsuit arguing that the Biden administration violated federal procedures by failing to seek public input when moving forward with the student loan debt relief program.
Beta Testing Process
The DOE’s beta testing website for student loan forgiveness applications is available at: https://studentaid.gov/debt-relief/application
The testing period has been implemented to allow the DOE to uncover bugs, refine any site processes, and ensure the website runs smoothly for future applicants.
Borrowers are expected to receive debt relief within weeks after submitting the application and once the site officially launches.
The goal is to begin to get the applications processed before next January, when student loan payments will resume after a multi-year freeze amid the COVID-19 pandemic, according to DOE officials.
Related Content from ACA International:
Cato Institute Joins Wave of Lawsuits Against Student Loan Relief Program
Biden Administration Changes Student Loan Forgiveness Plans Following State AGs Lawsuit
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