Justice Department argues Biden administration’s student debt relief program is legitimate

The Justice Department has filed its response to an appeals court decision. Give pause to the Biden administration’s student loan relief programArguing that the program is legitimate and states lack the standing to intervene and the pause jeopardizes the public interest.

But if a court should halt the program pending appeal, the department argues, the court should only do so in states where the state’s attorney general sued.

Friday Eighth Circuit issued temporary stay In response to an emergency motion brought by lawyers from several Republican-led states, a lower court ruled that their september lawsuit There was a lack of standing to stop the loan forgiveness program.

The attorney generals for Iowa, Kansas, Missouri, Nebraska, South Carolina and Arkansas said the student loan forgiveness program would cause irreparable damage to their states’ student loan programs.

The migration is not based on merits, but allows for further briefing on the issue this week.

US Supreme Court on Thursday an emergency appeal denied by a group of Wisconsin taxpayers who challenged the plan in a separate lawsuit.

President Biden announced in August That 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 the Pell Grant for eligible low- and middle-income households can get up to $20,000 in debt forgiven, while other borrowers can get up to $10,000 in relief. 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.

The Biden administration said it would continue to review applications for debt relief already received and prepare them for transmission to debt servicers as it waits for courts to make a final decision.

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