More than 800,000 Arizonans eligible for student loan forgiveness. A lawsuit could block relief.

President Joe Biden and Education Secretary Miguel Cardona: Photo by Olivier Douliery/AFP via || Getty Images

By Emily Sacia ||Arizona Republic

More than nine out of 10 student borrowers in Arizona are expected to benefit from President Joe Biden’s student loan forgiveness program, according to data released by the White House, but a lawsuit filed Tuesday has put any hope of debt relief in jeopardy for many across the state.   

The Pacific Legal Foundation, a nonprofit organization based in Sacramento, filed suit against the U.S. Department of Education to block a plan unveiled last month by the White House that would cancel $400 billion in student loan debt, citing concerns that Biden’s move was illegal and unauthorized. In Arizona, 91% of student borrowers, or 810,800 people, would potentially benefit, per the White House.

The administration’s plan would forgive $10,000 of student loan debt only for undergraduate degrees for borrowers who earn less than $125,000 ($250,000 for married couples) annually. Pell Grant recipients qualify to receive an additional $10,000 in debt forgiveness, according to a White House fact sheet. 

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