What 6 states are suing Biden over student loan forgiveness?

Asked by: Rico Cartwright  |  Last update: December 23, 2023
Score: 4.6/5 (1 votes)

The states — Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina — jointly filed a 36-page complaint in the U.S. District Court for the Eastern District of Missouri, the second legal challenge this week against President Joe Biden's debt cancellation plan.

Which states filed lawsuit against student loan forgiveness?

On Sept. 29, six Republican-led states — Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina — filed a lawsuit against the president's plan, arguing that Biden was vastly overstepping his authority by moving to cancel hundreds of billions of dollars in consumer debt without authorization from Congress.

What 6 states are trying to block student loan forgiveness?

Six states urge U.S. Supreme Court to keep block on Biden student debt relief. Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina asked the U.S. Supreme Court to reject President Joe Biden's bid to reinstate his plan to cancel billions of dollars in student debt.

What states are suing Biden administration student loan forgiveness?

The 8th Circuit Court of Appeals blocked the Biden Administration's plan to forgive at least $10,000 in federal student loans for most borrowers nationwide, despite the Biden Administration asking any order against it to be limited to just the six states that sued: Arkansas, Iowa, Kansas, Missouri, Nebraska and South ...

What 7 states are taxing student loan forgiveness?

But most reports — including the Tax Foundation's — say that seven states are most likely to tax student loan forgiveness: Arkansas, California, Indiana, Minnesota, Mississippi, North Carolina and Wisconsin. There's even uncertainty about that, however.

6 Republican-led states sue over Biden's student loan forgiveness plan

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What states are not taxing student loan forgiveness?

States that have conformed to the federal treatment, do not tax forgiven loans, or announced that they are not taxing the forgiven student loans, include:
  • Alabama.
  • Arizona.
  • California.
  • Colorado.
  • Connecticut.
  • Delaware.
  • District of Columbia.
  • Georgia.

How will I know if my student loan will be forgiven?

Under IDR plans, borrowers become eligible to have any remaining balances forgiven after 20 or 25 years of repayment, depending on the loan type and when it was taken out. The regulation stipulates that borrowers make 240 or 300 monthly payments to qualify for forgiveness.

Who is suing the government over student loan forgiveness?

Six GOP-led states case

The states — Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina — allege that the debt relief “is not remotely tailored to address the effects of the pandemic on federal student loan borrowers, as required by the HEROES Act.”

Did Supreme Court block Biden's student loan forgiveness?

In a stinging defeat for President Joe Biden, the Supreme Court blocked the administration's student loan forgiveness plan Friday, rejecting a program aimed at delivering up to $20,000 of relief to millions of borrowers struggling with outstanding debt.

Does Biden student loan forgiveness apply to me?

Eligibility for Biden's Student Loan Cancellation Plan

You must have current outstanding debt on federal student loans, including parent PLUS loans, obtained before June 30, 2022. You must earn less than $125,000 a year for individuals, or $250,000 for married couples and/or head of households.

Which student loans are not eligible for forgiveness?

What student loans are not eligible for forgiveness? Private student loans, by definition, are private and are not eligible to be forgiven. These are loans the borrower owes to student loan providers and not the federal government. Mr.

What states have qualified for Navient student loan cancellation?

Borrowers in the following states are eligible for the restitution payments: AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, IL, IN, KY, LA, MA, MD, ME, MN, MO, NC, NE, NJ, NM, NV, NY, OH, OR, PA, TN, VA, WA and WI.

What states have the most student debt?

Total student loan debt per state
  • With a total debt of $141.8 billion, California is the state with the largest student loan debt in the country.
  • This means California residents hold a total of 9.42% of all student debt in the USA.
  • This is followed by Texas and Florida, each of which owes more than $100 billion.

Who struck down the student loan forgiveness?

By a vote of 6-3, the justices ruled that the Biden administration overstepped its authority last year when it announced that it would cancel up to $400 billion in student loans.

Is the U.S. Department of Education sued over Biden's student loan cancellation plan?

WASHINGTON, Sept 27 (Reuters) - Conservative group Pacific Legal Foundation filed a federal lawsuit Tuesday against the U.S. Department of Education with the intent of stopping President Joe Biden's student loan cancellation plan.

Have any lawsuits been filed against student loan forgiveness?

What's happened so far. Conservative organizations and states have filed numerous lawsuits against the Department of Education, with the first filed a month after Biden first announced his student loan debt forgiveness plan. That lawsuit was later dismissed by a federal judge.

Did the Supreme Court rule on student loan forgiveness?

When the Supreme Court struck down the Biden administration's student loan forgiveness plan at the end of June, it dealt a crushing blow to the president as he runs for reelection and to the tens of millions of Americans who were promised the financial relief.

What decision was made for student loan forgiveness?

In a 6-3 decision, the high court ruled that the Biden Administration did not have authority under a 2003 federal law to forgive hundreds of billions of dollars of student debt.

Is student loan debt owned by the government?

Student loans are owned by the federal government or private institutions, depending on the type of student loan. Federal student loans are owned by the U.S. Department of Education while private student loans are owned by the financial institution that granted them.

Who is most affected by student loan forgiveness?

It's estimated Black and Hispanic women are expected to experience some of the largest reductions in the percentage with any student loans from the $10,000 relief plan: 5.4 and 4.7 percentage points, respectively. White men are expected to experience among the smallest reductions (2.4 percentage points).

How long does it take to know if you re approved for student loan forgiveness?

Borrowers should expect that the process may take up to six months, and in some cases, longer.

How long does it take for student loan forgiveness to be forgiven?

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your federal student loans after 120 payments working full time for federal, state, Tribal, or local government; the military; or a qualifying non-profit. Learn more about PSLF and apply.

How long until I see the student loan forgiveness?

Top administration officials indicated that applications will be processed on a rolling basis through 2023, and they expected a four-to-six week turnaround time between when a borrower submits an application and when they receive student loan forgiveness.

How much will taxpayers pay for student loan forgiveness?

The average burden per U.S. taxpayer will be $2,503.22, according to new estimates from the National Taxpayers Union based on the specifics of Biden's plan. The federal student loan debt forgiveness applies to individuals with less than $125,000 in income and couples with less than $250,000.

What 13 states will tax student loan forgiveness?

The states where residents may need to pay taxes on the forgiven debt are Arkansas, Hawaii, Idaho, Kentucky, Massachusetts, Minnesota, Mississippi, New York, Pennsylvania, South Carolina, Virginia, West Virginia and Wisconsin.