Student-loan borrowers can now apply for debt cancellation, but the relief is still in limbo with lawsuits in the mix

• Student-loan borrowers can apply for debt relief now during a beta testing period.
• Lingering conservative lawsuits could still pose a challenge to the relief if they prevail.

President Joe Biden's administration is moving full speed ahead with student-loan forgiveness, but lawsuits could still pose a challenge to that relief.

On Friday evening, the Education Department launched the student-loan forgiveness application for a beta testing period, during which borrowers can apply for up to $20,000 of debt cancellation as the department monitors the site and determines any needed fixes before formally setting it live later in October. The exact date for when the site will be officially available is yet to be determined, and borrowers' applications will not be processed until then.

It's clear Biden's administration is moving forward with the process for relief and doesn't appear to be deterred by the lingering lawsuits attempting to block debt cancellation from coming to fruition. At least five major conservative lawsuits have been filed so far, and borrowers are awaiting a decision from a federal judge who heard arguments from six Republican-led states last week that claimed debt relief will hurt their states' tax revenues, along with the business operations of Missouri-based student-loan company MOHELA.

Should the judge rule in favor of the Republicans and impose a preliminary injunction on the relief, the implementation process would be paused — meaning no loan forgiveness could be applied to borrowers' accounts — until a final decision on the legality of broad debt cancellation is made. It could also mean borrowers will have to resume payments in January 2023 without any relief applied to their accounts.

The primary authority being challenged is the HEROES Act of 2003, which gives the Education Secretary the ability to waive or modify student-loan balances in connection with a national emergency, like COVID-19. While Biden says he has the right to use that authority because borrowers are still financially recovering from the pandemic, the Republicans challenging the relief said that this is an overreach of the authority and lacks any standing.

While it's unclear which side the judge who heard arguments last week will favor, at least two conservative lawsuits have already been struck down, suggesting a positive trend for millions of borrowers hoping for an up to $20,000 reduction to their debt balances. And administration officials continue to be confident Biden has the standing to carry out broad loan forgiveness, telling reporters during a press call prior to the preview of the application that it is "not getting sidetracked" by the mounting legal challenges.

"We're moving full steam ahead to implement this form and sharing with you this simple and straightforward process," the official said.

Borrowers can apply for relief during this beta testing period at this link, and they will just need to fill out basic information like their names, email addresses, and Social Security numbers. They should receive a confirmation email once the application is submitted, and their student-loan company will notify them once the relief is processed.