A federal appeals court is blocking President Biden’s student loan forgiveness program on Friday. The 8th Circuit Court of Appeals issued a temporary stay in response to an emergency motion brought by lawyers from several Republican-led states following a lower court ruling.There was a lack of standing to stop the loan forgiveness program.
In their appeal, the plaintiffs — which include Iowa, Kansas, Missouri, Nebraska, South Carolina and Arkansas — said the forgiveness program would cause irreparable damage to their states’ student loan programs.
“Missouri is harmed by the financial loss that resulted from the cancellation,” the motion read.
They do not live on merit, but allow further briefings on the issue next week.
This also comes after the US Supreme Court Thursdayby a group of Wisconsin taxpayers who challenged the plan in a separate lawsuit.
President BidenThat his administration is canceling up to $20,000 in student loan debt for millions of Americans. Under the new scheme, around 20 million people will be eligible to completely cancel their debt.
Borrowers who receive Pell grants, which are for low- and middle-income households, can get up to $20,000 in debt forgiven, while other borrowers can get up to $10,000 in respite.
Only individuals who earned less than $125,000 in 2020 or 2021 and married couples with a total annual income of less than $250,000 are eligible for debt relief under the program.
Earlier this week, the US Department of EducationIts debt relief application website. It is unclear how Friday’s decision will affect the site or the application process.
Robert Legare contributed reporting.