Indiana News

Federal judge in Indianapolis declines to stop student loan forgiveness program

INDIANAPOLIS (WISH) — A federal judge in Indianapolis will allow the Biden administration student loan forgiveness program to move forward.

Judge Richard Young rejected requests for a temporary restraining order or a preliminary injunction that would stop the loan program.

An Indiana-based attorney filed suit in federal court in Indianapolis earlier this week, hoping to block the plan that would forgive up to $10,000 for those with student loans or $20,000 for those who received Pell grants.

Frank Garrison argued the plan would cost him money since Indiana plans to collect income tax on the forgiven debt.

Federal officials have notified Garrison he will be exempted from the loan forgiveness since his loans are already scheduled to be erased under the Public Service Loan Forgiveness program.

Judge Young also questioned whether Garrison has the standing to file the lawsuit and whether the suit was filed prematurely, as the Education Department’s plan is still evolving.