The Biden administration’s unprecedented plan to forgive billions of dollars in student debt for tens of millions of Americans was temporarily put on hold on Friday by a federal appeals court. After over 22 million people — or roughly half of the anticipated number of eligible Americans — submitted applications for debt relief in the first week it was made accessible, the administration had been prepared to begin paying off the debt as early as this weekend. According to the idea, debtors who fulfill specific income conditions and have government-owned student loans are eligible to apply for a once-off cancellation of up to $10,000 of their debt, or $20,000 if they have ever received a Pell Grant.
The loan forgiveness scheme has been contested in court by a group of six Republican-led states, including Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina, who claim it is illegal and will hurt their economies. On Thursday, a Federal District Court judge in St. Louis dismissed their case, one of many attempts by Republican lawmakers and conservative organizations to halt the one-time debt relief, on the grounds that the states lacked the required legal standing. The loan forgiveness program has been suspended pending the outcome of the states’ application for a preliminary injunction. The states promptly filed an appeal of the decision with the U.S. Court of Appeals for the Eighth Circuit, which on Friday approved their request for an emergency stay.
Carolina – claim that the loan forgiveness program is unlawful and would financially hurt them if it were to be implemented. On Thursday, a Federal District Court judge in St. Louis dismissed their case, one of many attempts by Republican lawmakers and conservative organizations to halt the one-time debt relief, on the grounds that the states lacked the required legal standing. The loan forgiveness program has been suspended pending the outcome of the states’ application for a preliminary injunction. The states promptly filed an appeal of the decision with the U.S. Court of Appeals for the Eighth Circuit, which on Friday approved their request for an emergency stay.
