Federal court blocks Biden's student debt relief plan
STORY: U.S. President Joe Biden’s student loan forgiveness plan was put on hold, due to an emergency stay order from a federal appeals court late on Friday (October 21).
The order prevents the Biden administration from discharging any student debt under the program, until the 8th U.S. Circuit Court of Appeals reviews an appeal from six Republican-led states.
The lawsuit from the six states, challenging the loan forgiveness program, was dismissed by a U.S. district judge on Thursday, for lacking the “the necessary legal standing to pursue the case”.
Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina said Biden’s plan skirted congressional authority, threatened state tax revenues, and threatened profits from state entities that invest in, or service loans.
In response, White House press secretary Karine Jean-Pierre said the temporary order doesn’t stop Americans from applying for the program, or stop the administration from reviewing and preparing applications.
Biden’s debt forgiveness plan axes up to $10,000 in student loans for borrowers making less than $125,000 a year, or $250,000 for married couples. Lower-income college students who received Pell Grants, will have up to $20,000 of their debt cancelled.
The non-partisan Congressional Budget Office expects the plan to cost roughly $400 billion.
