Strike that, reverse it: Student Loan Forgiveness put on hold

Back in July, the Department of Education announced that it would be taking targeted action this fall to forgive student loans for millions of borrowers, but now that relief has been threatened by an injunction from a federal court in Georgia. The action comes in response to a motion filed by several state attorneys general led by—you guessed it—Missouri, who alleged that the targeted forgiveness plan would harm its entity—you guessed it—MOHELA. As usual, our friend Mark Kantrowitz was right to expect legal challenges to these plans. Representatives from the Student Borrower Protection Center, however, are alarmed by the precedent of a legal challenge to a proposed rule that doesn’t yet exist.

We will continue to follow this and other student loan forgiveness cases and update you as they unfold. We hope that the legal system will swiftly and decisively bring these cases to conclusion in a way that benefits an American public in which citizens are over $1.7 trillion in debt to their own government. 

If you have any questions about how these cases affect you and your student loans, we’re always here to help! Give us a call and we’ll help you navigate fact from fiction, reality from speculation.