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Federal Court Halts Biden’s Student Loan Debt Forgiveness for Now

Conservatives have attacked the debt forgiveness plan as expensive overreach of executive authority since the plan was announced. In this case, the six states argued that the debt forgiveness plan could incentivize student loan borrowers with loans serviced by the states, which aren’t eligible for debt forgiveness, to swap those loans for federal loans that are eligible, costing the states money, according to USA Today.

Published

3 years ago

October 29, 2022

Oakland Post

The plan, announced in August, would cancel $10,000 in debt for eligible applicants and $20,000 for Pell Grant recipients. (Photo: iStockphoto)

By Brandon Patterson

A federal appellate judge on October 21 temporarily blocked the Biden Administration from cancelling student debt in response to a lawsuit filed by six conservative states alleging they could be hurt financially by the plan.

The court blocked the plan after the states appealed a lower court’s decision to throw out their suit due to failure to show they would be hurt by it. The court ruling does not prevent the administration from operating the debt forgiveness application or prevent people from applying, the White House said. But no debt can be waived until the court issues a final decision. It is not clear how long the temporary decision will last.

The administration had intended to start cancelling loans as soon as October 23, court records show, according to USA Today. The plan, announced in August, would cancel $10,000 in debt for eligible applicants and $20,000 for Pell Grant recipients.

“Plaintiffs will suffer no irreparable injury from the provision of much-needed relief to millions of Americans, but the public interest would be greatly harmed by its denial,” the Biden Administration said in legal filings, adding that, if the court disagrees, any injunction should only apply to the states that filed the lawsuit, where about 2.8 million people are eligible for forgiveness, according to USA Today. Those states include Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina.

The administration, however, says the Department of Education already changed its loan regulations to disallow the swaps, according to USA Today, rendering the issue moot. The states also argue, however, that the administration has no authority to cancel the debt at all. The administration has held that a 2003 law allows the executive branch to reduce or erase student loan debt.

The case is just one of many lawsuits over Biden’s debt cancellation plan. At least six different parties have challenged the plan in court. In most cases, however, the lawsuits have been quickly dismissed, according to USA Today.

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Financial Wellness and Mental Health: Managing Money Stress in College 

While everyone’s financial situation is unique, several common sources of stress have the potential to strain your financial health. These include financial and economic uncertainty, existing debts, unexpected expenses, and mental or physical health changes. Financial stress may differ from situation to situation, but understanding the factors contributing to yours may help you begin to craft a plan for your unique circumstances.

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3 weeks ago

March 17, 2026

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Sponsored by JPMorganChase

As a college student, managing financial responsibilities can be stressful.

If you’ve found yourself staying up late thinking about your finances or just feeling anxious overall about your financial future, you’re not alone. In one survey, 78% of college students who reported financial stress had negative impacts on their mental health, and 59% considered dropping out. While finances can impact overall stress, taking steps to manage your finances can support your mental, emotional and physical well-being.

When it comes to money, the sources of stress may look different for each student, but identifying the underlying causes and setting goals accordingly may help you feel more confident about your financial future.

Consider these strategies to help improve your financial wellness and reduce stress.

Understand what causes financial stress

2. Determine your financial priorities

Start by reflecting on your financial priorities. For students this often includes paying for school or paying off student loans, studying abroad, saving for spring break, building an emergency fund, paying down credit card debt or buying a car. Name the milestones that are most important to you, and plan accordingly.

3. Create a plan and stick to it

While setting actionable goals starts you on the journey to better financial health, it’s essential to craft a plan to follow through. Identifying and committing to a savings plan may give you a greater sense of control over your finances, which may help reduce your stress. Creating and sticking to a budget allows you to better track where your money is going so you may spend less and save more.

4. Pay down debt

Many students have some form of debt and want to make progress toward reducing their debt obligations. One option is the debt avalanche method, which focuses on paying off your debt with the highest interest rate first, then moving on to the debt with the next-highest interest rate. Another is the debt snowball method, which builds momentum by paying off your smallest debt balance, and then working your way up to the largest amounts.

5. Build your financial resilience

Some financial stress may be inevitable, but building financial resilience may allow you to overcome obstacles more easily. The more you learn about managing your money, for instance, the more prepared you’ll feel if the unexpected happens. Growing your emergency savings also may increase resilience since you’ll be more financially prepared to cover unexpected expenses or pay your living expenses.

6. Seek help and support

Many colleges have resources to help students experiencing financial stress, like financial literacy courses or funds that provide some assistance for students in need. Talk to your admissions counselor or advisor about your concerns, and they can direct you to sources of support. Your school’s counseling center can also be a great resource for mental health assistance if you’re struggling with financial stress.

The bottom line

Financial stress can affect college students’ health and wellbeing, but it doesn’t have to derail your dreams. Setting smart financial goals and developing simple plans to achieve them may help ease your stress. Revisit and adjust your plan as needed to ensure it continues to work for you, and seek additional support on campus as needed to help keep you on track.

 JPMorgan Chase Bank, N.A. Member FDIC