Borrowers are already receiving student loan forgiveness approval letters

The Biden administration’s student loan forgiveness plan is still stuck in legal limbo, but some borrowers are already approved.

Millions of borrowers who applied for loan forgiveness have begun to receive letters telling them they have been approved. However, none of the debtors have actually had their loans forgiven as of yet due to pending litigation which is noted in the approval letters:

“We received your application or have the income information to process you for loan relief. You do not need to take any further action at this time” the approval letters say. “Unfortunately, a number of lawsuits have been filed challenging the program, which have blocked our ability to discharge your debt at present.”

Currently, the loan forgiveness program is blocked by a pair of federal cases which among other things prohibits the Biden administration from actually acting on the plan. The borrowers who are currently receiving approval letters applied through the web portal which has now been disabled.

The administration has already appealed the decisions of the lower courts likely setting up a showdown at the U.S. Supreme Court level.

The Biden administration’s proposed student loan forgiveness plan forgives up to $10,000 in federal student loans for most eligible borrowers and up to $20,000 for Pell Grant recipients. The plan was designed to fulfill a campaign promise made by Joe Biden but has been challenged in court by conservatives who claim it is unfair to the taxpayers and that it is an overreach of the executive branch.

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