Biden’s student debt relief plan blocked by appeals court, delaying rollout for up to 40 million people
President Joe Biden’s student loan forgiveness plan has been temporarily blocked by a federal appeals court, delaying the distribution of up to $20,000 in debt relief to more than 40 million eligible borrowers.
The Biden administration cannot release any student loans until the 8th U.S. Circuit Court of Appeals in St. Louis ruled in response to a request for orders from six GOP-led states challenging the legality of the debt forgiveness plan.
The states’ attorneys asked the court to reinstate their case over the plan after it was dismissed Thursday by a federal judge who determined the states would not be directly harmed. if the plan is in effect.
The states have asked the appeals court to temporarily block implementation of the plan while their case continues, and the court issued an unsigned emergency order late Friday halting any debt relief while they review request.
The Biden administration opened applications for the debt forgiveness program earlier this month. Under the plan, federal student loans of up to $20,000 for certain borrowers earning less than $125,000 per year or $250,000 for households would be forgiven.
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