Biden's student loan forgiveness plan was paused by a federal judge.
The relief would hurt state revenues according to the ruling.
Until a final judgement is made, the relief can't move forward.
President Joe Biden's student-loan forgiveness plan was halted by a federal judge.
In response to a request from six Republican-led states who sued the plan, the 8th Circuit Court of Appeals temporarily paused debt cancellation from rolling out. The case was thrown out by a federal judge on Thursday, who ruled that there wasn't enough standing to stop the relief.
The White House Press Secretary said in a statement that borrowers can still apply for the program and that the halt doesn't prevent them from reviewing applications.
She said that the development prevents debt from being discharged until the court makes a decision.
The appeals court was asked to stay the cancellation of student debt by the Biden administration until October 22 at 9:00 a.m.
At least five other major conservative lawsuits have been filed that sought to block loan forgiveness, but they have yet to progress.
President Biden's student debt cancellation plan was put on hold by a judge today due to a lawsuit filed by a greedy student loan company. This is part of the legal process. The executive director of the Student Debt Crisis Center is confident that the president's student debt cancellation plan will stay in place.
The status quo of no relief will remain until the loan forgiveness is decided. It comes just days after Biden officially launched the application for student-loan forgiveness that requires borrowers to fill out a simple form with basic contact information.
On the same day, Biden announced that 22 million student loan borrowers applied for the program.
"In less than a week, close to 22 million people have given us the information to be considered for this life-changing relief," Biden said.
Roughly half of the borrowers would be eligible for the program.
Jean-Pierre said that they will continue to move quickly in their preparations. The administration will continue to fight to get relief for working families.
Business Insider has an article on it.
All Rights Reserved © 2024
