• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down

2

Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for

3

The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow

1

'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down

2

Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for

3

The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
Personal Financestudent loans and debt

Biden’s student loan forgiveness plan is temporarily blocked. Here’s how the lawsuits could impact you

Alicia Adamczyk
By
Alicia Adamczyk
Alicia Adamczyk
Senior Writer
Down Arrow Button Icon
Alicia Adamczyk
By
Alicia Adamczyk
Alicia Adamczyk
Senior Writer
Down Arrow Button Icon
October 24, 2022, 3:11 PM ET
President Joe Biden
The Biden administration’s student loan forgiveness plan is in jeopardy.Anna Moneymaker / Getty
Add Fortune on Google for similar content.

A federal appeals court has put a temporary hold on President Joe Biden’s one-time federal student loan forgiveness plan, delaying—possibly permanently—the implementation of the widespread loan cancellation.

The order came from the 8th U.S. Circuit Court of Appeals in St. Louis in Nebraska v. Biden, a case brought by six Republican-led states. It hasn’t completely blocked the program; rather, the order means the Biden administration cannot discharge any student loans until the court officially rules on the injunction request.

There are currently multiple lawsuits challenging the legality of the federal forgiveness program and others that have been dismissed. Most recently, a suit filed by a Wisconsin taxpayer was dismissed by the Supreme Court last week.

The administration had previously promised not to discharge any debt under the widespread forgiveness plan until Oct. 23 at the earliest and said that automatic forgiveness would not occur until after Nov. 14. Now there is no official date as to when forgiveness can actually begin.

That said, the Office of Federal Student Aid is still encouraging borrowers to apply on its website. It will continue to review applications behind the scenes and “quickly process discharges” if and when it’s allowed to.

“Application is open, but debt discharge is paused,” the site reads. “As a result of a court order, we are temporarily blocked from processing debt discharges.”

At least 22 million borrowers have already applied for forgiveness, the White House said Friday.

In Nebraska v. Biden, states including Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina are arguing the one-time relief plan would harm their tax revenues and investment portfolios, among other injuries. Specifically, Missouri alleges that MOHELA, a student loan servicing company, would be hurt by the widespread loan cancellation.

The case was previously dismissed by a district court judge, who found that none of the states had standing; the plaintiffs immediately appealed that decision. The Biden administration has until Monday evening to file its response to the plaintiffs’ appeal. The states will then respond in turn on Tuesday.

Biden’s student loan forgiveness plan

At the end of August, Biden announced that borrowers with federal student loans could have up to $10,000 or $20,000 forgiven, depending on their income and status in school.

Those earning an adjusted gross income under $125,000 in 2020 or 2021 and who received a Pell Grant while in school can receive up to $20,000 in loan forgiveness; everyone else under the same income limits can get up to $10,000.

Conservatives are against the plan, saying it benefits wealthy people and that the Biden administration does not have the authority to cancel debt on its own.

An analysis by the Penn Wharton Budget Model found working and middle-income households would disproportionately benefit. Meanwhile, the richest Americans would be almost completely excluded, given the income cap. One-third of borrowers will have their debt completely eliminated, according to data from the U.S. Department of Education.

The application for President Joe Biden’s one-time student loan forgiveness program went live last week.

Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.

About the Author
Alicia Adamczyk
By Alicia AdamczykSenior Writer
LinkedIn iconTwitter icon

Alicia Adamczyk is a former New York City-based senior writer at Fortune, covering personal finance, investing, and retirement.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Personal Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Personal Finance

Wealthy man in car
SuccessMillionaires
120 millionaires have signed a letter begging the British government to tax them more: ‘We can afford it’
By Emma BurleighJuly 24, 2026
14 hours ago
Current price of gold as of July 24, 2026
Personal Financegold prices
Current price of gold as of July 24, 2026
By Danny BakstJuly 24, 2026
17 hours ago
Today’s top high-yield savings rates: Up to 4.50% on July 24, 2026
Personal FinanceSavings accounts
Today’s top high-yield savings rates: Up to 4.50% on July 24, 2026
By Glen Luke FlanaganJuly 24, 2026
19 hours ago
Top CD rates today, July 24, 2026: Lock in up to up to 4.45%
Personal FinanceCertificates of Deposit (CDs)
Top CD rates today, July 24, 2026: Lock in up to up to 4.45%
By Glen Luke FlanaganJuly 24, 2026
19 hours ago
Top CD rates from major banks July 24, 2026: Chase CDs, Bank of America CDs, Citibank CDs, and more
Personal FinanceCertificates of Deposit (CDs)
Top CD rates from major banks on July 24, 2026: Chase CDs, Bank of America CDs, Citibank CDs, and more
By Joseph HostetlerJuly 24, 2026
19 hours ago
Current price of Bitcoin for July 24, 2026
Personal FinanceCryptocurrency
Current price of Bitcoin for July 24, 2026
By Joseph HostetlerJuly 24, 2026
19 hours ago

Most Popular

'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down
Economy
'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down
By Eleanor PringleJuly 24, 2026
22 hours ago
Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for
Big Tech
Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for
By Sydney LakeJuly 23, 2026
2 days ago
The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
Economy
The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
By Sasha RogelbergJuly 23, 2026
2 days ago
The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
Real Estate
The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
By Nick LichtenbergJuly 22, 2026
3 days ago
Current price of oil as of July 24, 2026
Personal Finance
Current price of oil as of July 24, 2026
By Joseph HostetlerJuly 24, 2026
19 hours ago
Turns out Dead Internet Theory was right: AI agents are eating the Web, growing by nearly 8,000% and rewiring the Internet's business model
AI
Turns out Dead Internet Theory was right: AI agents are eating the Web, growing by nearly 8,000% and rewiring the Internet's business model
By Mia OsmonbekovJuly 23, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.