Two Federal Courts Deal Blow to Biden Administration’s Federal Student Loan Forgiveness Program: A Close Look at the Decisions

November 17, 2022
Subscribe and Listen
listen on apple podcasts listen on google podcasts listen on spotify

After reviewing the background of the current moratorium on federal student loan payments and the Biden Administration’s decision to grant loan forgiveness, we discuss two recent decisions that have paused the Administration’s ability to proceed with forgiveness. We first analyze the Texas federal district court decision vacating the forgiveness program, including the court’s standing analysis and application of the “major questions doctrine.” Next, we discuss the Eighth Circuit Court of Appeals panel decision enjoining the forgiveness program pending resolution of an appeal filed by six state attorneys general whose challenge to the program had been dismissed by a Missouri federal district court for lack of standing. We also look at the Administration’s likely next steps in the two cases, the prospects for Supreme Court review, and whether the payments moratorium is likely to continue beyond its scheduled January 2023 expiration.

Alan Kaplinsky, Ballard Spahr Senior Counsel in the firm’s Consumer Financial Services Group, hosts the conversation, joined by Tom Burke, a partner in the Group.

View the recording transcript here.

Subscribe to Ballard Spahr Mailing Lists

Get the latest significant legal alerts, news, webinars, and insights that affect your industry. 

Copyright © 2024 by Ballard Spahr LLP.
(No claim to original U.S. government material.)

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, including electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the author and publisher.

This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.