4parentstoday US appeals court temporarily blocks Biden’s student loan forgiveness plan – 4Parents

US appeals court temporarily blocks Biden’s student loan forgiveness plan

WASHINGTON, Oct 21 (Reuters) – A U.S. appeals court on Friday temporarily blocked President Joe Biden’s plan to cancel billions of dollars in student college debt, one day after a judge led a lawsuit Republican dismissed by six states challenging the loan forgiveness program. .

The 8th US Circuit Court of Appeals granted an emergency stay that would prevent any student debt from being discharged under the program until the court rules on the state’s request for a longer-term injunction and Thursday’s decision is appealed.

The St. Louis-based appeals court also ordered an expedited briefing schedule on the matter.

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US District Judge Henry Autrey ruled in St. Louis on Thursday that while the six Republican-led states raised “important and significant challenges to the debt relief plan,” he threw out their lawsuits on the grounds that they lacked the necessary legal standing. to pursue the. case.

Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina said Biden’s plan usurped congressional authority and threatened future state tax revenue and money earned by state entities that invest in or service student loans. student loans.

The nonpartisan Congressional Budget Office calculated in September that debt forgiveness would cost the government about $400 billion.

White House press secretary Karine Jean-Pierre said Thursday’s temporary order does not prevent borrowers from applying for student debt relief or prevent the Biden administration from reviewing applications and preparing them for for transmission to foreign servicers.

“We encourage eligible borrowers to join the nearly 22 million Americans whose information the Department of Education already has,” said Jean-Pierre.

“It is important to note that the trial court’s dismissal order does not reverse the case or imply that the case has merit,” she said. “It just prevents debts from being discharged until the (appeal) court makes a decision.”

Nebraska Attorney General Doug Peterson, a Republican leading the lawsuit, welcomed the temporary stay.

“It is extremely important that the court analyze the legal issues surrounding presidential power before transferring over $400 billion in debt to the American taxpayers,” he said.

The case that reaches the 8th Circuit is one of a number filed by conservative state attorneys and legal groups trying to stop the debt forgiveness plan that Biden, a Democrat, announced in August.

Autrey rule about an hour after US Supreme Court Justice Amy Coney Barrett denied without explanation an emergency request to suspend the debt relief plan in a separate challenge brought by the Wisconsin-based Brown County Taxpayers Association.

Biden said the US government will forgive up to $10,000 in student loan debt for borrowers who make less than $125,000 a year, or $250,000 for a married couple. Borrowers who received Pell Grants to benefit low-income college students will have up to $20,000 of their debt canceled.

The policy fulfilled a promise made by Biden during the 2020 presidential campaign to help former college students with debt.

Democrats hope that the policy will increase their support in the November 8 mid-term elections where control of Congress is at stake.

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Reporting by Eric Beech in Washington and Steve Gorman in Los Angeles; additional reporting by Nate Raymond and Ismail Shakil; Editing by Grant McCool and Lincoln Feast

Our Standards: Thomson Reuters Trust Principles.

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