What to know if you've applied for student loan forgiveness

NEW YORK (AP) — President Joe Biden’s plan to provide up to $20,000 in federal student loan forgiveness has been blocked by two federal courts, leaving millions of borrowers wondering what happens next. The administration plans to appeal. Here's what to know if you've applied for relief:

WHAT HAPPENS NOW?

While the application for relief has been taken down from the Federal Student Aid website, applications that have already been filed are on hold while the appeal works its way through the courts.

“Courts have issued orders blocking our student debt relief program,” the Education Department said on its site. “As a result, at this time, we are not accepting applications. We are seeking to overturn those orders.”

A federal judge in Texas ruled that the plan overstepped the White House's authority. Before that, a federal appeals court in St. Louis put the plan on temporary hold while it considers a challenge from six Republican-led states.

Still, advocates believe the administration will succeed in court.

“We’re really confident they’re going to find a way forward to cancel people’s debt,” said Katherine Welbeck at the Student Borrower Protection Center.

Experts say student loan forgiveness has the potential to end up before the Supreme Court, meaning this could be a lengthy process.

WHEN DO PAYMENTS RESUME?

Most people with student loan debt have not been required to make payments during the coronavirus pandemic, but payments are set to resume, along with the accrual of interest, in January.

Biden previously said the payment pause will not be extended again, but that was before the courts halted his plan. He's now facing mounting pressure to continue the pause while the legal challenges to the program play out.

WHAT IF...