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The Daily Cardinal Est. 1892
Tuesday, June 18, 2024
debt 04262012

Biden's student debt program is in limbo after an appeals court ruling Friday.

Appeals court temporarily blocks Biden’s student loan forgiveness plan

The ruling throws uncertainty on 43 million federal borrowers eligible for up to $20,000 in debt relief.

A federal appeals court temporarily blocked President Joe Biden’s student loan forgiveness plan Friday, creating uncertainty for borrowers seeking up to $20,000 in relief from the program, according to The Washington Post.

The 8th Circuit Court of Appeals issued a brief order preventing the Biden administration from discharging student loan debt forgiveness until a formal ruling is made on a pending legal challenge from six states, according to POLITICO.

The joint lawsuit, which argued Biden’s debt relief plan was aggressive and unconstitutional, was initially dismissed by a federal judge Thursday before the states appealed to the 8th Circuit for an emergency stay.

Friday’s ruling is temporary and only applies until the appeals court decides whether to impose a preliminary injunction next week, according to Forbes. If granted, the injunction would further delay student debt relief, throwing approximately 43 million federal student loan borrowers into even more uncertainty.

The U.S. Department of Education officially launched a student loan forgiveness application portal on its website Wednesday following a short beta test application window. Biden’s administration had hoped to begin canceling student loans as early as Monday, according to POLITICO.

This is a developing story.

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Tyler Katzenberger

Tyler Katzenberger is the former managing editor at The Daily Cardinal. He also served as the state news editor, covering numerous protests, elections, healthcare, business and in-depth stories. He previously interned with The Capital Times, Milwaukee Journal Sentinel and is an incoming POLITICO California intern. Follow him on Twitter at @TylerKatzen.

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