Blanket Student Loan Forgiveness Vacated by U.S. District Court
On Thursday, November 10, 2022, the United States District Court for the Northern District of Texas declared the blanket student loan forgiveness program unlawful and vacated the program. This ruling, issued by United States District Judge Mark T. Pittman, was in favor of plaintiffs Myra Brown et al, who had filed the case on October 10, 2022.
Court Ruling on Blanket Student Loan Forgiveness
The plaintiffs argued that the plan to forgive $10,000 or $20,000 in student loan debt per borrower violated the Administrative Procedures Act. They contended that the policy “was formulated and executed by un-elected administrators who are not directly accountable to the populace.”
Following the ruling, the U.S. Department of Education immediately removed the student loan forgiveness application from the studentaid.gov website. As a result, student loan borrowers are no longer able to apply for the blanket student loan forgiveness program. This decision affects Pell Grant recipients and all borrowers who had qualified under the original plan.
Impact on Hope Credit Borrowers
Despite this decision, Hope Credit borrowers should understand that this ruling does not impact original student loan forgiveness programs that are based on federal legislation and negotiated rule-making.
All existing income-driven repayment (IDR) forgiveness programs remain intact. Hope Credit clients will continue benefiting from:
- Lower monthly student loan payments
- Credit toward the 10-year, 20-year, and 25-year student loan forgiveness programs
- Protections under long-standing federal law
These income-based repayment options have been part of federal law for decades, ensuring borrowers still have pathways to student loan debt relief despite the recent court ruling.
What Comes Next for Student Loan Borrowers?
With the blanket student loan forgiveness program vacated, borrowers must explore alternative student debt relief options. The Biden administration has expressed its commitment to pursuing other legal avenues for broad student loan debt relief. Meanwhile, borrowers should review their eligibility for income-driven repayment (IDR) plans, Public Service Loan Forgiveness (PSLF), and other existing forgiveness programs. Staying informed about policy changes and future developments is crucial for those seeking student loan relief.