The federal student loan program was put on hold after a federal appeals court issued an injunction.
The administration objected to the 8th Circuit blocking the debt relief plan. The injunction was issued due to a lawsuit.
Millions of economically vulnerable borrowers are left in limbo, uncertain about the size of their debt and unable to make financial decisions with an accurate understanding of their future repayment obligations as a result of the Eighth Circuit's incorrect injunction.
The filing could be considered a petition to the high court to hear the Biden administration's appeal of the lower court's decision.
If the Supreme Court agrees to the administration's appeal, the case could be expedited and argued this term. Prelogar said that keeping the plan on hold could keep borrowers in the dark about their debts.
Free returns may soon be a thing of the past, as consumers cut back on gift buying.
Monday's injunction by the 8th Circuit panel of three judges in St. Louis was the latest in a series of legal challenges to President joe Biden's plan to cancel up to $20,000 in student debt for millions of Americans
A federal judge in Texas struck down the Biden administration's relief plan last week, deeming it unconstitutional.
The challenge to the debt relief program brought by six states was rejected by a federal judge.
The judge ruled that the states did not have legal standing to challenge the plan.
The idea of standing is that a person or entity will be affected by a court case.
After their lawsuit was denied, the GOP states appealed.
The appeals panel pointed out that a major loan servicer based in the state would lose revenue under the plan. The treasury department in Missouri gets money.
There could be a rise in student loan defaults if the forgiveness plan is not allowed to go through, according to a top official at the U.S. Department of Education.
The student loan borrowers had a reasonable expectation that they wouldn't have to make additional payments on their federal student loans, according to the U.S. Department of Education. He wrote that this belief may stop them from making payments even if the Department doesn't effectuate debt relief.
Unless the Department is allowed to provide one-time student loan debt relief, we expect this group of borrowers to have higher loan default rates.
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