Cousins! There appears to be a roadblock in the way of the Biden Administration ‘s student loan forgiveness program following news that six Republican led states have forwarded an appeal!
According to CNN, the Eighth Circuit Court of Appeals placed a block on the program as attorneys of the republican states argue that progress shouldn’t be allowed to move further until current legal endeavors are fully handled.
It has been stated that a lawsuit was originally filed back in September by an Attorney General, insisting that the Biden administration does not have the authority to cancel student loan debt that hasn’t been authorized by congress. However U.S. District Judge Henry Autry ruled that they did not demonstrate they are directly harmed by the relief, which is needed to meet the standard of having standing, says The Hill.
The Biden administration has explained that they are authorized to cancel debt through the Higher Education Relief Opportunities for Students Act of 2003.
As we previously reported the plan promised to offer relief of $10,000 in federal student loan debt for borrowers that currently earn less than $125,000 a year. Also Pell Grant recipients could receive up to $20,000 in financial relief.
White House press secretary Karine Jean-Pierre has confirmed that the ruling does not stop borrowers from applying for relief and will have no effect on the government reviewing applications. But the administration will not be able to forward relief until the appeals court issues an official ruling on the case.
Reports read that the Biden administration has been forwarded a deadline to respond that must be addressed by 5PM on Monday.