8th Circuit Puts Brakes on Biden Student Loan Forgiveness Program
WASHINGTON – Less than 24 hours after a federal judge said it could proceed, a federal appeals court has temporarily pumped the brakes on President Biden’s student loan forgiveness program.
The temporary stay of the program by the 8th U.S. Circuit Court of Appeals came in response to an emergency filing by six Republican-led states.
In August President Biden announced his intention to cancel up to $10,000 in student loan debt for borrowers earning less than $125,000 per year.
Those who received Pell Grants could receive up to $20,000 in relief.
On Thursday, U.S. District judge Henry Autry had dismissed the state’s lawsuit, ruling they did not have standing to sue because they had not shown they’d be harmed by the program.
The attorneys general in the six states filed their lawsuit in September, arguing that the Biden administration does not have the authority to cancel the debt because the U.S. Constitution grants Congress sole power of the purse.
During an appearance in Delaware on Friday afternoon, President Biden lauded the fact that over 22 million people applied for student loan debt forgiveness following the start of the application period earlier this week.