President Joe Biden’s student loan-forgiveness plan has been temporarily blocked by a federal appeals court, delaying distribution of up to $20,000 in debt relief for more than 40 million eligible borrowers.
The Biden administration can’t discharge any student loans until the 8th US Circut Court of Appeals in St. Louis rules on an injunction request from six GOP-led states challenging the legality of the debt relief plan.
Attorneys for the states asked the court to revive their lawsuit over the plan after it was dismissed Thursday by a federal judge who determined that the states wouldn’t suffer any direct harm if the plan went into effect.
The states asked the appeals court to temporarily block rollout of the plan while their case proceeds, and the court issued an unsigned emergency order late Friday pausing any debt relief while they consider the request.
The Biden administration opened applications for its debt relief program earlier this month. Under the plan as much as $20,000 in federal student loans for certain borrowers making less than $125,000 per year or $250,000 for households would be forgiven.
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