Biden student loan handout faces another emergency legal challenge

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The Supreme Court on Tuesday received another emergency application for an injunction on President Joe Biden’s student loan cancelation program, this time from a legal group on behalf of two Indiana borrowers.

In the filing submitted to Associate Justice Amy Coney Barrett, the Pacific Legal Foundation argued the program should be halted pending the appeal to prevent "irreparable harm" that it claimed would be caused by automatic debt cancelation. The plaintiffs – who originally qualified for automatic debt relief – and similar borrowers could face "increased state-tax liability" triggered by it, the group argued.

STUDENT LOAN RELIEF APPLICATION NOW OFFICIALLY AVAILABLE THROUGH ONLINE PORTAL

The plaintiffs have since been exempted, according to the filing, which alleged the Education Department added the mechanism for opting out of automatic cancelation amid lawsuits.

Barrett on Oct. 20 previously denied a Wisconsin taxpayers association’s emergency application for the nation’s highest court to pause the student loan forgiveness program while their case was appealed.

The cost of college has soared multiple times the rate of inflation over the past 50 years. (istock / iStock)

The same month, the U.S. Court of Appeals for the 8th Circuit granted a motion that temporarily bars "discharging any student loan debt" by the federal government pending a separate challenge to the program.

APPLICATION FOR STUDENT LOAN RELIEF IS LIVE, BUT SOME BORROWERS ARE NO LONGER ELIGIBLE

Biden’s student loan forgiveness plan, first announced in August, seeks to cancel up to $20,000 in student loan debt for Pell Grant recipients and up to $10,000 for eligible federal non-Pell Grant borrowers. To qualify, individuals must have an adjusted gross income of less than $125,000, and married couples must have one of less than $250,000.

President Biden  (Reuters / Reuters Photos)

His plan could cost more than $400 billion, according to an estimate from the nonpartisan Congressional Budget Office. 

The application portal, available through the Federal Student Aid website, was officially unveiled Oct. 17. The deadline to apply for the debt relief is Dec. 31 of next year.

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