Federal Court Blocks $20 Billion in Student Loan Forgiveness

August 11, 2023

The injunction is the latest in a series of setbacks for the Biden administration’s loan forgiveness agenda.

by Emma Camp Reason.com

A federal court has blocked Biden administration rules that would have provided almost $20 billion in student loan forgiveness, primarily to students who attended colleges that defrauded them.

Last July, the Education Department released new proposed rules expanding eligibility for the department’s “borrower defense” forgiveness program, as well as several other smaller loan forgiveness programs. The borrower defense program offers loan forgiveness to students whose schools engaged in misconduct or misled or defrauded them. In most cases, students eligible for borrower defense attended for-profit schools. The rules were finalized last November.