Biden administration celebrates 8th Circuit Court ruling on student loan forgiveness

Landmark Decision Upholds President's Plan to Provide Relief to Borrowers

Secretary of Education Miguel Cardona: "This is a major victory for millions of Americans who are struggling with student debt."

WASHINGTON, D.C. - The Biden-Harris Administration today celebrated a major victory in the fight to provide relief to student loan borrowers, as the 8th Circuit Court of Appeals upheld the Administration's plan to cancel up to $20,000 in student debt for millions of Americans.

"This is a major victory for millions of Americans who are struggling with student debt," said Secretary of Education Miguel Cardona. "The Biden-Harris Administration is committed to providing relief to borrowers and making college more affordable for all Americans."

The 8th Circuit Court's ruling is a significant development in the ongoing legal battle over the Biden administration's student loan forgiveness plan. Several Republican-led states had challenged the plan, arguing that the administration did not have the authority to cancel student debt without congressional approval.

However, the 8th Circuit Court disagreed, ruling that the administration has the authority to cancel student debt under the Higher Education Relief Opportunities for Students (HEROES) Act of 2003. The HEROES Act was passed in the wake of the September 11th attacks to provide relief to service members who were unable to repay their student loans due to military service.

The Biden administration has argued that the HEROES Act also gives the administration the authority to cancel student debt during national emergencies, such as the COVID-19 pandemic. The 8th Circuit Court agreed with this argument, ruling that the COVID-19 pandemic has caused a "national emergency" that has made it difficult for many Americans to repay their student loans.

The 8th Circuit Court's ruling is a major victory for the Biden administration, and it is likely to pave the way for the administration to implement its student loan forgiveness plan. The administration has already begun processing applications for student loan forgiveness, and it expects to start canceling debt in the coming weeks.

The Biden administration's student loan forgiveness plan is a significant step towards providing relief to borrowers and making college more affordable for all Americans. The plan will cancel up to $20,000 in student debt for borrowers who earn less than $125,000 per year, and it will also make changes to the income-driven repayment program to make it easier for borrowers to repay their loans.