Local students react to pause of student debt forgiveness plan after ruled unconstitutional

ByKaren Alvarez KTRK logo
Sunday, November 13, 2022
Students react to judge striking down Biden's student loan relief plan
EMBED <>More Videos

As of Friday, The Department of Education is no longer accepting applications for the student loan relief program since it was blocked a day before.

HOUSTON, Texas (KTRK) -- A Texas federal judge struck down President Joe Biden's student loan relief plan on Thursday, stating it was unconstitutional.

RELATED: Federal judge in Texas blocks Biden student loan forgiveness plan

The plan was already on hold after an appellate court issued a hold in another lawsuit against the program.

This ruling has complicated matters for those graduating soon and finding themselves in limbo.

ABC13 talked to Gabriela Avila, a corporate communications student at the University of Houston, and she'll graduate in just a couple of weeks.

But like many students, she will graduate with student debt.

"At the end of the day, you just want to get a degree, be able to have that with you for the rest of your life, and it just sucks that it costs so much," Avila said.

The relief would have benefitted students like Avila and freshman Evelyn Peralta, who says she will also graduate with debt.

RELATED: President Joe Biden's student loan forgiveness program no longer accepting applications

Under Biden's plan, as much as $10,000 in federal student loan debt would have been canceled for those who make less than $125,000 a year.

Those who received Pell Grants could have been forgiven up to $20,000.

Dane Spencer, a financial advisor with Financial Synergies, has clients who are being affected by the plan's hold and says it's tough to say what kind of impact Thursday's ruling will have.

"We've had a pretty good pulse on it, so we've had most of our clients that do have student loans, whether its medical or undergrad things, we had them fill out the application beforehand while it's available.