A federal appeals court ruled Monday that the White House can't move forward with a debt relief plan while litigation continues against it.
President Joe Biden spoke on the student debt relief plan.
The 8th Circuit Court of Appeals blocked the Biden Administration's plan to forgive at least $10,000 in federal student loans for most borrowers nationwide despite the Biden Administration asking any order against it to be limited to just six states.
The court ruled that the suspension of loan payments and interest on student loans would hurt the state's ability to fund higher education.
The hold will remain in place until further action is taken.
The Biden Administration's loan relief policy was blocked by the court until it could hear from both sides and decide if it should be stopped.
Republican-led states argued the White House exceeded its authority in imposing the student loan forgiveness policy and told the appeals court that allowing the relief funds to roll out to borrowers would "irreparably harm" the states.
The Biden Administration argued that the order should stand because the appeals court blocking the White House from discharging funds would harm the public interest.
A federal judge in Texas struck down the federal student loan forgiveness program on Friday.
In August, the White House announced a plan to forgive student loans. According to legal experts cited by the Washington Post, the states' lawsuit was the best chance of defeating the policy in court. On the same day that the lawsuit was filed, the Biden administration walked back part of its plan to forgive federal loans held by private companies. The Supreme Court rebuffed a request by Wisconsin taxpayers to block the policy and the Pacific Legal Foundation's lawsuit against the debt relief failed in court multiple times. The group has an appeal pending.
A total of 22 million. More than half of the Americans who applied for student loan forgiveness in the first week were eligible, according to President Joe Biden. There is a program that can help people with student loan debt if they earn less than $125,000 a year.
The White House doesn't know what the court's ruling will mean for student loan forgiveness and if borrowers will still be allowed to apply. There is a chance that a future court ruling will uphold the student debt policy and allow borrowers to receive their relief.
The student loan cancellation plan of Biden was blocked by the appeals court.
The judge rules against the GOP challenge as Biden's student loan forgiveness gets green light.
More than half of the total believed to be eligible have applied for student loan relief.
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