Federal appeals court blocks Biden student debt relief program nationwide

The student loan debt relief program was temporarily stopped by a federal appeals court.

A decision by the 8th Circuit Court of Appeals in St. Louis is the latest in a series of legal challenges to President Joe Biden's plan to cancel up to $20,000 in student debt. The Biden administration stopped taking applications for relief on Friday after a federal judge in Texas struck down its plan.

The decision by the appeals court comes after six GOP-led states argued in a lawsuit that the loan relief program threatens their future tax revenues.

The appeals court said that the injunction would remain in effect until further order of the Supreme Court of the US.

The debt relief program will be put on hold until an appeal of the lower court ruling is heard. The Supreme Court has the power to lift injunctions.

While they raised important and significant challenges to the debt relief plan, they did not have legal standing to bring the case.

Finding a person who can prove they have been harmed by the policy is the main obstacle for those hoping to bring a legal challenge. According to a Harvard law professor, injury is necessary to establish standing.

The appeals court pointed out that a major loan servicer based in Missouri would lose revenue under the plan. The treasury department in Missouri gets money.

Since at least one party has standing, we don't need to discuss the standing of the other states.

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Biden wants to eliminate up to $20,000 in federal student debt for people who received a Pell Grant. Up to $10,000 in relief can be given to borrowers who don't have a grant. The plan is expected to benefit more than 30 million people.

The panel said in its ruling that the case would affect the finances of millions of Americans with student loan debt as well as those who pay taxes to finance the government.

We approach the motions before us with care.

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