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Federal appeals court blocks Biden's student loan forgiveness program

Biden Student Loan Debt
Posted at 1:00 PM, Nov 14, 2022
and last updated 2022-11-14 16:32:53-05

The Eighth Circuit Court of Appeals granted an injunction after six-Republican led states argued against President Joe Biden's plan to cancel federal student loan debt for millions of Americans.

The injunction is in effect while the appeals process plays out.

The decision follows another decision from a district court judge who blocked the program last week. That judge said the president overstepped his authority by going around Congress.

The Biden administration is appealing that ruling, which will likely end up in the Eighth Circuit Court.

The program would forgive up to $20,000 worth of federal student loan debt for borrowers who received Pell Grants. People who didn't receive a Pell Grant are eligible for up to $10,000 in loan forgiveness. Recipients would have to be making less than $125,000 a year.

The Biden administration stopped accepting applications for the program last week as the process plays out in court. The administration believes it will prevail in court.

“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," said White House Press Secretary Karine Jean-Pierre. "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.”