Federal Court Temporarily Stops Biden’s Student Loan Forgiveness Program
A federal appeals court late Friday issued an administrative stay temporarily blocking President Joe Biden’s plan to cancel billions of dollars in federal student loans, throwing the program into limbo just days after people began applying for loan forgiveness.
The Eighth Circuit Court of Appeals issued the stay while it considers a motion from six Republican-led states to block the program. The stay ordered the Biden administration not to act on the program while it considers the appeal.
It’s unclear what the decision means for the 22 million borrowers who already applied for the relief. The Biden administration had promised not to clear any debt before Oct. 23 as it battled the legal challenges, but the soonest it was expected to begin erasing debt was mid-November.
