Update on Student Debt Cancellation

Update on Student Debt Cancellation

October 26, 2022
By: Freedom to Prosper Team


The Student Loan Debt Relief Application is now available. Already 22 million Americans have applied without any glitch or difficulty, and thanks to the Biden-Harris Administration, student loan borrowers are one step closer towards becoming debt-free.

But the recent legal snag has left some borrowers confused. It might feel like a roller coaster of emotions, but experts agree that the best thing borrowers can do for now is to apply.

What happened?

A temporary hold was placed after a lower court ruled that the September lawsuit from GOP states lacked standing. Iowa, Kansas, Missouri, Nebraska, South Carolina, and Arkansas claimed the forgiveness program will irreparably harm their states’ student loan programs.

For now, borrowers should apply while we’re in a holding pattern. They should also prepare for payments to restart in January if the repayment moratorium isn’t extended again.

The Freedom to Prosper

According to the Department of Education, 40 million Americans are eligible for the debt relief program. With 81% of borrowers likely to apply, we applaud the administration for providing an easy and simple process that is giving students hope.

With the midterms two weeks away, no one should sit out of this election! We must elect leaders at the federal level who support student debt relief policy, so millions of families can have the greater freedom to prosper.

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