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President Joe Biden's plan to waive student loan debt for people making less than $125,000 or families earning less than $250,000 annually has faced an uphill battle since his Aug. 24 announcement. that Biden's action is allowable under a 2003 law, known as the Higher Education Relief Opportunities for Students Act, which authorizes the executive branch to overhaul student loan programs.
On Nov. 10, District Judge Mark T. Pittman in Texas called Biden's plan a "complete usurpation" of congressional authority by the executive branch and rejected the Biden administration's arguments that it has authority to act under the HEROES Act. Pittman temporarily halted the program.It also issued an emergency appeal to the U.S. Supreme Court Nov.
The administration previously said borrowers with privately owned federal student loans, including Federal Family Education Loan and Perkins Loans, could consolidate their loans into federal Direct Loans made directly by the Department of Education. It said this would qualify those borrowers for relief under Biden's cancellation program, giving people a path to receive up to $10,000 or $20,000 of loan forgiveness.
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