Biden’s student loan forgiveness scheme is temporarily halted: President Joe Biden’s student debt relief program put on hold by a federal appeals court on Friday, giving the Administration a setback only days after it started taking applications from students seeking to have up to $20,000 in debt canceled.
The 8th Circuit Court of Appeals put the Biden administration’s initiatives on hold. At the same time, it reviews an appeal from authorities in six states with a majority of Republicans, who had their case against the program rejected by a federal court on Thursday.
In its one-page decision, the court said that no student loan debt could forgiven under the program until it decided on the appeal. The Biden administration give until Monday to react, the court ruled.
Friday, White House press secretary Karine Jean-Pierre said again that the appeals court decision does not stop people from asking for their debts to forgive.
“It is also important to remember that the ruling neither suggests that the lawsuit has merit nor overturns the trial court’s decision to reject it. Instead, it just delays the discharge of debt until the court rules. “In a statement, she said.
“In accordance with this directive, we’ll keep moving forward with our preparations at full speed.” The Administration will also keep up the battle against Republican officials who are suing to stop our initiatives to help working families. ”
In an attempt to stop the administration’s scheme from implemented, representatives from South Carolina, Nebraska, Missouri, Arkansas, Iowa, and Kansas filed a lawsuit last month. This matter is now before the appeals court.
The six Republican-majority states argue that the Biden administration’s debt forgiveness program exceeds Congress’s intent and that its staff violate the law by pretending otherwise.