Federal appeals court blocks Biden’s student loan forgiveness plan

Federal appeals court blocks Biden’s student loan forgiveness plan

A federal appeals court on Friday temporarily blocked the Biden administration from moving forward with its student loan forgiveness plan.

On Friday, the 8th U.S. Circuit Court of Appeals granted an emergency petition, blocking the feds from beginning to forgive millions of student loan borrowers’ debt until further briefing before the court, scheduled for next week. 

The president had planned to begin forgiving the debt this weekend. 

Six Republican-led states sued in September seeking to halt the move, arguing it would further damage the economy.

The Biden administration announced in August plans to cancel $10,000 to $20,000 of student debt per borrower for those who make less than $125,000 a year, or $250,000 for married couples.

The U.S. Supreme Court had refused to block the plan earlier this week through an emergency petition presented to Justice Amy Coney Barrett in a separate case involving a challenge by a Wisconsin taxpayer group.

President Biden cited the HEROES Act for supporting his move, which was passed after Sept. 11 and gave the executive branch authority to forgive certain debt regarding the military during emergencies.

The Biden administration says the COVID-19 pandemic is considered an emergency under the law, applying it to student loan borrowers.