On Friday, the Supreme Court rejected a second request brought by the Pacific Legal Foundation to block the Biden administration’s student loan debt relief program.
Pacific Legal Foundation Case
Two borrowers in Indiana claim the debt forgiveness would financially harm them, as they would incur state taxes on that canceled debt.
Several states, including Indiana, has said that forgiveness would be subject to state taxation, and potentially the county level.
Justice Amy Coney Barrett responsible for applications issued from cases in the 7th US Circuit Court of Appeals, including Indiana and Wisconsin, rejected the request.
On Oct. 20, Barrett rejected a similar request from the Brown County Taxpayers Association in Wisconsin.
Student Loan Debt Relief Program
In August, the Biden administration unveiled its student loan relief plan, to cancel $10,000 in student loans and up to $20,000 for Pell Grants applicants.
Almost 26 million Americans have applied for the student loan forgiveness, and 16 million requests has been approved so far.
However, the student loan forgiveness remains on hold due to a challenge from six GOP-led states after an appeals court judge in the 8th Circuit granted a stay.
