ALERT: Student Loan Debt Relief On Hold

Jeanette Falotico, Staff Writer

On Friday the Federal Student Debt Relief program was put on hold due as politicans fight over whether the administration has the legal right to relieve student debt.

“President Biden does not have the power to arbitrarily erase the college debt of adults who chose to take out those loans,” said Arkansas Attorney General Leslie Rutledge.

In a complaint filed on Sept. 22 by the states of Arkansas, Iowa, Kansas, Nebraska, Missouri, and South Carolina it’s argued that the statutes detailed in the 2003 Higher Education Relief Opportunities for Students Act, intended for use by active-duty military personnel doesn’t apply to forgiving student debt as defined in the Federal Student Debt Relief program.

After a lower court dismissed the states’ complaint for lack of sufficient standing, the Federal Student Debt Relief program was temporarily put on hold by an appeals court.

“The order does not reverse the trial court’s dismissal of the case, or suggest that the case has merit,” Karine Jean-Pierre, the White House press secretary “It merely prevents debt from being discharged until the court makes a decision.”

According to StudentAid.gov, an Office of the US Department of Education, “Federal Student Debt Relief is a program that provides eligible borrowers with full or partial discharge of loans up to $20,000 to Federal Pell Grant recipients and up to $10,000 to non-Pell Grant recipients.”

Announced in August, this program provides relief to individuals who made less than $125,000 in 2021 or 2020 or families that made less than $250,000 in 2021 or 2020.

The relief portal started accepting applications on Oct. 17. However, according to the Free Application for Federal Student Aid (FAFSA) StudentAid.gov website, “Application is open, but debt discharge is paused. As a result of a court order, we are temporarily blocked from processing debt discharges. We encourage you to apply if you are eligible. We will continue to review applications. We will quickly process discharges when we are able to do so and you will not need to reapply.”

Therefore, if you believe you are eligible, and have not already applied. Login to StudentAid.gov and start your application today. Be prepared to enter the basics like your name, address, telephone number, and social security number.

How do you know if you are eligible?  Checkout your tax return. Your adjusted gross income (AGI) is on line 11 on the federal 1040 tax form. If you are listed as a dependent on someone else’s tax return, you need to add their AGI. You do not have to have earned a degree to qualify.