The new date is Oct 21, 2022.
The plan to forgive student loans was put on hold after the 8th Circuit Court of Appeals granted a request from a group of Republican attorneys general.
Biden spoke about Covid-19 during a press event. The photo was taken by Saul LOEB.
Some borrowers were expected to have their student loans forgiven as soon as Sunday.
The court ruled that the administration can't forgive loans until the judges make a decision on the request for an injunction.
Republican AGs from Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina brought the challenge, accusing President Joe Biden of skirting congressional approval for his plan and threatening states' tax revenues.
The judge dismissed the challenge but the AGs appealed.
The White House did not reply immediately.
The last-minute ruling is a blow to the administration in the short-term, but does not represent an opinion on the policy, and borrowers can continue filling out loan relief applications. Federal student loan borrowers who make less than $125,000 a year are eligible for $10,000 in forgiveness under Biden's plan. The White House believes the debt cancellation program is legal because the Education Secretary can modify student loans during times of national emergency.
One of the 14 active and senior judges on the 8th Circuit was appointed by a Democratic president.
A total of 22 million. That is how many borrowers applied for loan cancellation in the first week.
The Supreme Court turned down a request to block the program.
More than half of the total believed to be eligible have applied for student loan relief.
The Supreme Court won't stop Biden's student loan forgiveness.
All Rights Reserved © 2024
