Federal court blocks Biden student loan forgiveness plan

The court ruled Friday that Biden’s plan to cancel thousands of dollars of student loan debt should be shelved while legal challenges go to court.

ST. LOUIS – A federal appeals court late Friday issued a temporary order blocking President Joe Biden’s plan to cancel billions of dollars in federal student loans.

The Eighth Court of Appeals issued a stay while considering a request from six Republican-led states to block the loan cancellation program. The stay ordered the Biden administration not to implement the program while it considered the appeal.

Lawyers for six Republican-led states have asked a federal appeals court to review their efforts to block the Biden administration’s program to forgive hundreds of millions of dollars in student loan debt. pellets.

A notice of appeal to the Eighth U.S. Court of Appeals was filed late Thursday, hours after U.S. District Judge Henry Autrey of St. Louis ruled that because Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina could not establish status, “The Court lacks jurisdiction to hear this case.”

In addition, six states also asked the district court to order an order barring the administration from implementing the debt cancellation plan until the appeals process is over.

Speaking at Delaware State University, a historic college for blacks where the majority of students receive the federal Pell Grant, Biden on Friday said nearly 22 million people had applied for a reduction. loan in the week since his administration made the application online.

The plan, announced in August, would cancel $10,000 of student loan debt for people earning less than $125,000 or households earning less than $250,000. Pell Grant recipients, who typically demonstrate greater financial need, will receive an additional $10,000 in debt forgiveness.

The Congressional Budget Office says the program will cost about $400 billion over the next three decades. James Campbell, an attorney for the Nebraska attorney general’s office, told Autrey at an October 12 hearing that the administration is acting outside of its agencies in a way that will cost states millions of dollars. la.

The cancellation applies to federal student loans used for undergraduate and graduate school, along with Parent Plus loans. Existing college students are eligible if their loans are disbursed by July 1. The plan makes 43 million borrowers eligible for forgiveness, with 20 million able to get a full write-off. all, according to the government.

The announcement immediately became a major political issue ahead of the November midterm elections.

Conservative lawyers, Republican lawmakers and business-oriented groups have asserted that Biden exceeded his authority in taking such sweeping action without his consent. Congress. They call this an unfair government gifting to the relatively wealthy at the expense of taxpayers not pursuing higher education.

Many Democratic lawmakers facing tough re-election contests have distanced themselves from the plan.

On Friday, Biden criticized Republicans who have criticized his relief program, saying “their outrage is false and it is hypocritical.” He noted that some Republican officials have been forgiven of debt and pandemic relief loans.

Six states sued in September. Attorneys for the administration objected that the Department of Education has “broad authority to administer federal student financial aid programs.” A court filing states that the Higher Education Student Relief Act of 2003, or the HEROES Act, allows the secretary of education to waive or modify the terms of federal student loans. state during times of war or national emergency.

“COVID-19 is an emergency,” the filing states.

The HEROES Act was enacted after September 11, 2001, terrorist attacks aimed at helping members of the military. The Justice Department said the law allows Biden to reduce or forgive student loan debt during a national emergency. Republicans say the administration is misinterpreting the law, in part because the pandemic no longer qualifies as a national emergency.

Justice Department attorney Brian Netter told Autrey at the October 12 hearing that fallout from the COVID-19 pandemic is still spreading. He said student loan defaults have skyrocketed over the past two and a half years.

Other lawsuits have also sought to stop the program. Earlier on Thursday, Supreme Court Justice Amy Coney Barrett dismissed an appeal from a group of Wisconsin taxpayers seeking to stop the debt cancellation program.

Barrett, who oversaw emergency appeals from Wisconsin and surrounding states, did not comment on the denial of an appeal from the Brown County Taxpayers Association. The group wrote in its Supreme Court application that it needed an urgent order because the administration could begin canceling unpaid student debt as soon as Sunday.

RELATED: Judge rejects states’ attempt to block student debt forgiveness plan

RELATED: Justice Barrett Denies Appeal on Biden Student Debt Plan

RELATED: Biden: Nearly 22 Million Claimed Student Loan Relief

https://www.king5.com/article/news/nation-world/appeals-court-temporarily-blocks-student-loan-forgiveness/507-762ae1ce-512d-42e9-9c5f-644d2b8e4262 Federal court blocks Biden student loan forgiveness plan

Edmund DeMarche

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