INDIANAPOLIS — A federal judge in Texas declared a Biden administration student debt relief plan illegal on Thursday, halting the program in federal court again.
“It’s too easy to change majors and umpteen years in and have a lot of loans and then will they be able to pay it back,” Indianapolis resident Brenda Shafer said.
The Job Creators Network Foundation filed a lawsuit last month alleging that the plan violated federal procedural measures.
It's the second time the program has been held up in federal court after a federal appeals court places a temporary block on the student debt relief scheme stemming from a suit filed by six Republican-led states.
“At one point we were paying $1,200 a month as teachers, so I definitely understand the forgiveness side of it,” Chris Newbury said.
What does this potentially mean for borrowers that are currently in limbo – John McManus – a bankruptcy attorney for McManus & Associates – he feels that borrowers are going to be kept waiting for a while
“I believe what’s going to happen is that this is going to work its way up toward the supreme court – whether the supreme court will hear the case no one can say. Because it’s certainly a question of whether the president has that authority,” McManus said.
McManus advises to borrowers who are waiting. He says to keep dealing with your student loans – don’t just let them sit there.
“The worst thing that they can do is trust that this is going to happen and do nothing, and have it come back to haunt them in two years when it doesn’t go through and now, they are dealing with a higher student loan debt,” McManus concluded.
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