Court bars Biden’s student debt relief program leaving program in legal limbo

The 8th Circuit Court of Appeals in St. Louis ruling came after six states claimed that the debt relief plan "threatens their future tax revenues and circumvents congressional authority."

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After a federal judge in Texas declared the Biden administration’s student loan forgiveness program was illegal on Nov. 10, the program is again in legal limbo when a federal appeals court blocked Biden student debt relief program nationwide on Monday.

The 8th Circuit Court of Appeals in St. Louis ruling came after six states claimed that the debt relief plan, which cancels up to $20,000 in student debt for millions of Americans, “threatens their future tax revenues and circumvents congressional authority,” Caues.com reported. Nebraska, Missouri, Arkansas, Iowa, Kansas, and South Carolina were the states to file the lawsuit against the Biden administration.

“The injunction will remain in effect until further order of this court or the Supreme Court of the United States,” a three-judge panel of the appeals court said.

This will put the program on hold “pending an appeal of a lower court ruling that had allowed the debt relief program to go forward,” CNBC reported, or the Biden administration could ask the Supreme Court to lift the order.

“We are confident in our legal authority for the student debt relief program and believe it is necessary to help borrowers most in need as they recover from the pandemic,” Karine Jean-Pierre, White House Press Secretary, said. “The Administration will continue to fight these baseless lawsuits by Republican officials and special interests and will never stop fighting to support working and middle class Americans.”

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