Nearly 1.4 million Texans have been approved for debt relief under the Biden administration’s student loan forgiveness initiative, which remains in legal limbo as the U.S. Supreme Court considers the program’s validity.
The administration opened the application for debt relief last October, offering to cover up to $20,000 in outstanding loans for Americans earning less than $125,000. But the program was swiftly halted after a number of GOP states and advocacy organizations filed lawsuits against it, questioning the administration’s power to cancel debt without consulting Congress.
About 16.5 million people across the country have already been approved for relief, and almost another 10 million have applied or were deemed automatically eligible based on the administration’s income guidelines. Nearly 2.2 million Texans fall into that category, according to data posted by the Biden administration on Friday.
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“The data that we’re releasing today shows that only because of Republican officials’ and special interests’ flawed legal campaign, millions of eligible borrowers are being denied the relief that they need, including hundreds of thousands of those officials’ own constituents who applied for and were fully approved for relief,” said Bharat Ramamurti, the deputy director of the National Economic Council.
The Supreme Court will hear oral arguments on Feb. 28, and justices are expected to release a decision in June. Democrats have long pushed for student loan relief, arguing that the ballooning costs debilitate middle-class families who cannot keep up with the rising price of higher education.
The Biden proposal would provide $10,000 to all people who make less than $125,000. Eligible Americans who received Pell grants, given to low-income students, would get $20,000. Almost 90 percent of the relief provided to out-of-school Americans would impact those earning under $75,000, federal officials said.
The White House estimated in September that more than 3.3 million Texans would be eligible for at least $10,000, and 2.3 million would qualify for $20,000.
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“We are hopeful that we will prevail in court, and when we do, we will quickly discharge that debt for those who were approved for relief; process applications that are waiting to be processed; and do the important work of making sure that every eligible individual has a chance to benefit from our one-time debt relief plan,” Ramamurti said.
All federal student loan payments are currently paused due to the COVID-19 pandemic. The Trump administration first halted the payments in March 2020, and the Biden administration has extended the break through June 30 or until the forgiveness program is allowed to continue. Payments will restart 60 days later.
Republican critics say President Joe Biden overstepped his authority in implementing the program, and they have characterized it as a burden on taxpayers who must fund other people’s college education.
READ MORE: Texas student loan borrowers in limbo again after blocking of Biden’s relief plan
One legal complaint, filed by the Job Creators Network Foundation on behalf of two borrowers, also challenged the program’s eligibility criteria. A federal judge in North Texas blocked the program in November, saying the Biden administration did not seek public comment before rolling out the initiative.
With 1.39 million people already rubber-stamped, Texas has the second-highest number of borrowers who would quickly receive relief if the high court allows the initiative to continue. California has the most, at 1.47 million, and Florida clocks in at third with 1 million.
cayla.harris@hearst.com
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