Biden’s Student Loan Forgiveness Plan Put on Hold

  • by AGD Washington Advocacy Representative
  • Oct 27, 2022
President Biden’s plan to cancel up to $20,000 of student loan debt for eligible Pell Grant recipients and up to $10,000 of debt for eligible non-Pell Grant borrowers who earn less than $125,000 annually ($250,000 for married couples) has been temporarily blocked by a federal appeals court.

Six states filed a lawsuit in federal court arguing that President Biden lacks the authority to unilaterally forgive student loan debt en masse and that they would be financially harmed by the cancellation. A judge in Missouri dismissed the case, arguing the plaintiffs lacked the standing to sue, but upon appeal, the 8th Circuit Court of Appeals issued a legal stay prohibiting the Biden administration from “discharging any student loan debt” under its loan forgiveness plan until it rules on the states’ emergency request.

While the stay prevents the administration from forgiving student loan debt until the emergency request is decided, eligible borrowers can still apply for debt relief through https://studentaid.gov/. The White House says it continues to review and process applications while the case is under review.

Impact on General Dentistry: The AGD is closely following developments related to President Biden’s student loan forgiveness plan and its effect on borrowers. Student loan debt remains a significant issue for the AGD. Dental students face disproportionately high costs for graduate level education. In 2021, the average indebted dental graduate owed $301,583 in loans.