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Federal court halts Biden’s student loan debt forgiveness for now

By Brandon Patterson

On Oct. 21, a federal appeals judge temporarily blocked the Biden administration from canceling student debt in response to a lawsuit filed by six conservative states alleging they could be financially impacted by the plan.

The court blocked the plan after the states appealed a lower court’s decision to dismiss their lawsuit for failing to show they would be harmed by it. The court’s decision does not prevent the administration from exploiting the demand for debt forgiveness or preventing people from applying, the White House said. But no debt can be canceled until the court makes a final decision. It is unclear how long the temporary decision will last.

The administration intended to begin canceling the loans as early as Oct. 23, according to court records. USA today. The plan, announced in August, would forgive $10,000 of debt for eligible applicants and $20,000 for Pell Grant recipients.

“Plaintiffs will suffer no irreparable harm from the provision of much-needed relief to millions of Americans, but the public interest would be greatly harmed by its refusal,” the Biden administration said in legal documents, adding that while the court disagrees, the entire injunction should apply only to states that filed the lawsuit, where about 2.8 million people are eligible for pardons, according to USA today. These states include Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina.

Conservatives have attacked the debt cancellation plan as a costly overreach of executive authority since the plan was announced. In this case, the six states argued that the debt cancellation plan could incentivize student borrowers with state-administered loans, who are not eligible for debt cancellation, to swap those loans for eligible federal loans, which would cost the states money, according to USA today.

The administration, however, says the Department of Education has already changed its lending regulations to ban exchanges, according to USA today, rendering the question moot. However, the states also argue that the administration has no power to cancel the debt. The administration said a 2003 law allows the executive branch to reduce or erase student loan debt.

The case is just one of many lawsuits over Biden’s debt cancellation plan. At least six different parties have challenged the plan in court. In most cases, however, the lawsuits were quickly dismissed, according to USA today.

The post Federal Court Halts Biden’s Student Loan Debt Forgiveness for Now first appeared on Post News Group. This article originally appeared in Post News Group.



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