ST. LOUIS — President Joe Biden's plan to forgive student loan debt for millions of borrowers lost another battle in court on Monday when a federal appeals court panel agreed to a preliminary injunction halting the program while an appeal plays out.
People are also reading… A federal judge on Oct. 20 allowed the program to proceed, but the 8th Circuit the next day temporarily put the forgiveness plan while it considered an effort by the states of Nebraska, Missouri, Iowa, Kansas, Arkansas and South Carolina to block the program. The White House said 26 million people have applied for debt relief, and 16 million people had already had their relief approved.
The White House encouraged borrowers to continue applying for relief, saying the court order did not prevent applications or the review of applications. The new ruling, however, argues that the HEROES Act does not grant authority for mass debt cancellation. The law grants the Education Department wide flexibility during national emergencies, but the judge ruled that it's unclear whether debt cancellation was a necessary response to COVID-19, noting that Biden recently declared the pandemic over.
In either case, appellate courts would not issue a final ruling on the validity of the program, but on whether it can go forward while challenges proceed. Some borrowers said they were skeptical they would ever see the relief, anyway.Brenna Zimmerman, who graduated from Kansas State University in 2021 with about $30,000 in debt, called the debt forgiveness"a little bit too good to be true." And even though the program would benefit her, Zimmerman, 24, now a graphics coordinator at a packaging company, wonders if it's a good idea.
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US judge in Texas strikes down Biden loan-forgiveness planAfter millions of Americans have started their applications for student loan forgiveness, a federal judge in Texas says not so fast. Loan forgiveness starts at McDonalds ..even with a college degree..instead of sitting around waiting on the government
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