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Judge Easterbrook Says: Bankruptcy Court Could Set Aside Erroneous State Court Ruling
Student Loan Borrowers in Texas Get Biggest Share of Biden’s $1.2 Billion Forgiveness Plan
Texans will get the biggest share of President Joe Biden’s newest effort in canceling billions of dollars in student debt, a sign that more borrowers in the state have struggled to pay off longstanding loans, Bloomberg News reported. Residents in the Lone Star State that have signed up for a new income-driven repayment program known as SAVE will receive $116.6 million of the $1.2 billion awarded, according to data released by the White House. California, which has 8.5 million more residents than Texas, will see $114.8 million in relief. The forgiveness is the latest incremental effort by the Biden administration to cancel student debt after the Supreme Court blocked its one-time forgiveness plan last June. The nearly $138 billion the administration has canceled so far is less than half of the $400 billion the Congressional Budget Office said would be wiped out under the broad-based plan, and has primarily impacted a narrow group of borrowers who meet certain qualifications. The Biden administration announced on Feb. 21 that some 150,000 borrowers will receive a cumulative $1.2 billion in student-debt forgiveness under the income-driven repayment program known as SAVE. Borrowers enrolled in the plan who initially took out $12,000 or less in federal loans and have made at least 10 years’ worth of payments qualify for their remaining balance to be forgiven.

Biden Cancels $1.2 Billion of Federal Student Loans
President Joe Biden’s administration announced that more than 150,000 borrowers will receive $1.2 billion in student loan forgiveness under a program unveiled in January seeking to provide relief for Americans who had been making payments for at least a decade, Bloomberg News reported. The move — which benefits those enrolled in the government’s Saving on a Valuable Education (SAVE) plan — wipes out loans for those who borrowed less than $12,000 for their higher education. Other income-driven repayment plans also forgive balances, but only after 20 or 25 years of repayment. “With today’s announcement, we are once again sending a clear message to borrowers who had low balances: If you’ve been paying for a decade, you’ve done your part, and you deserve relief,” said Education Secretary Miguel Cardona in a statement. The latest round pushes the total relief approved by the Biden administration to nearly $138 billion, benefiting 3.9 million borrowers. That number could grow as more people become eligible for forgiveness under the SAVE program, which has 6.9 million people enrolled. Administration officials have declined to estimate how many borrowers will eventually see loans forgiven under the program.

Career College of Northern Nevada Filed for Bankruptcy on Day It Closed
A filing with the U.S. Bankruptcy Court for the district of Nevada on February 9 shows that Career College of Northern Nevada filed for bankruptcy on the day it unexpectedly closed. Students who were enrolled at the institution or were on an approved leave of absence on the 9th, or who withdrew from a training program within 180 days of the 9th, may qualify for a Closed School Discharge. Students who paid tuition fees without using U.S. Department of Education Student Financial Aid should contact the Nevada Commission of Postsecondary Education to file for reimbursement through the state's Tuition Recovery Fund.