Appeals Court Temporarily Halts Biden’s Student Debt Relief Plan

“While plaintiffs present important and significant challenges to the debt relief plan,” Judge Autrey wrote, “the current plaintiffs are unable to proceed to the resolution of these challenges.”

Mr. Biden’s plan would cancel $10,000 in federal student loan debt for those earning less than $125,000 per year, or $250,000 per household, and $20,000 for those who received Pell grants for low-income families. Some 22 million people have already applied since the application system opened late last week.

In a speech at Delaware State University on Friday, Mr. Biden attacked the states’ lawsuit, widely considered the most significant of multiple legal challenges that his plan faces. The Education Department has estimated that the program will cost $379 billion over its lifetime, which is more than 30 years.

“Republican members of Congress and Republican governors are doing everything they can to deny this relief, even to their own constituents,” Mr. Biden said.

In a court filing late Thursday, the suing states reiterated to the Eighth Circuit court their belief that their claims are “likely to succeed on the merits” and that they “have raised substantial or close questions on whether they have standing to pursue this case.”

This is a developing story. Check back for updates.

Article source: https://www.nytimes.com/2022/10/21/business/appeals-court-student-debt-relief-biden.html