A U.S. District Court judge in Texas struck down President Joe Biden’s student loan forgiveness plan, leaving many borrowers wondering what to do next.
U.S. District Judge Mark Pittman called it an “unconstitutional exercise of Congress’s legislative power.”
Now that Biden’s loan forgiveness plan has been ruled unconstitutional, here’s what borrowers need to know.
Is the Biden administration appealing the ruling?
Yes, White House Press Secretary Karine Jean-Pierre tweeted Thursday that the Biden administration has filed an appeal on the ruling through the Department of Justice.
“For the 26 million borrowers who’ve given @usedgov the necessary information to be considered for debt relief — 16 million of whom have already been approved for relief — the Department will hold onto their info, so it can quickly process their relief once we prevail in court,” Jean-Pierre tweeted.
A St. Louis federal appeals court agreed to keep the plan on hold on Monday, Nov. 15 while the appeal is underway.
“If the 5th U.S. Circuit Court of Appeals is asked to block Pittman’s ruling pending appeal, the losing side could then turn to the Supreme Court,” AP News said.
What should borrowers do next?
Biden administration officials had urged people to continue to submit applications to the website despite the ruling.
However, as of this Monday, the Federal Student Aid website displays a message saying it is no longer accepting applications as it attempts to overturn the ruling.
