Appeals Court Halts Biden’s Student Loan Forgiveness Program

Just one day after the Supreme Court shot down a Wisconsin group’s bid to block President Biden’s student loan relief program, another group led by six-GOP attorneys general was handed a win. 

After a lower court dismissed the states’ bid to halt the program, the US Court of Appeals for the 8th Circuit may give them a second chance. While they consider the case (and whether to issue a longer-standing injunction), the court has temporarily blocked the student loan scheme just days after millions of borrowers began applying.

The order instructs the Biden administration not to begin discharging debt under the relief effort, while the Biden administration has until 6pm EST on Monday to respond.

The six Republican-led states — Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina — are trying to block Biden’s plan, and have argued that the Biden administration doesn’t have the power to issue nationwide debt relief without Congress. They’re also claiming that the policy would harm private companies that service some federal student loans by reducing their business.