ST. LOUIS — A federal appeals court has temporarily blocked President Joe Biden’s student debt relief plan.
The U.S. Court of Appeals for the 8th Circuit issued a stay on Friday while it considers a motion from six Republican-led states to block the loan cancellation program to forgive hundreds of millions of dollars in student loan debt, according to The Associated Press.
BREAKING: A federal appeals court has temporarily blocked President Joe Biden's plan to forgive hundreds of millions of dollars in student loan debt. https://t.co/WJEEpwj5YX
— The Associated Press (@AP) October 22, 2022
The stay ordered the Biden administration not to act on the program while considering the appeal.
According to CNN, the Biden administration has until Monday to respond to the request.
Nearly 22 million people have already applied for federal student loan relief in the week since the Biden administration made its online application available.
A notice of appeal was filed Thursday, hours after U.S. District Judge Henry Autrey in St. Louis ruled that since the states of Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina failed to establish standing, “the Court lacks jurisdiction to hear this case,” the AP reported.
Biden’s plan calls for $10,000 in federal student debt cancellation for those with incomes below $125,000 a year or households that make less than $250,000 a year. Those who received federal Pell Grants to attend college are eligible for an additional $10,000. The plan makes 20 million eligible to get their federal student debt erased entirely, the AP reported.
Check back for more on this developing story.
©2022 Cox Media Group
