A federal appeals court has temporarily blocked the Biden administration from moving forward with its student debt relief program aiming to forgive billions of dollars in federal student loans.
The court action comes as six states argue that President Joe Biden has no grounds to cancel debt for millions of borrowers.
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The 8th Circuit Court of Appeals issued a stay prohibiting the administration from “discharging any student loan debt” under its loan forgiveness plan until it rules on an emergency request by six Republican states – Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina – as an attempt to block the policy.
“We are pleased the temporary stay has been granted,” Nebraska Attorney General Doug Peterson said in a statement. “It’s very important that the legal issues involving presidential power be analyzed by the court before transferring over $400 billion in debt to American taxpayers.”
The appeal for the federal appeals court to reconsider attorneys’ from the six states efforts to block the Biden administration’s plan comes hours after a federal judge in Missouri dismissed the case. The judge ruled that the six states failed to establish standing, saying “the Court lacks jurisdiction to hear this case.”
More:Judge dismisses suit from 6 GOP states aiming to block Biden student loan debt forgiveness plan
The Supreme Court also shut down the state’s efforts by denying a separate legal challenge from a Wisconsin taxpayer group that argued that Biden overstepped.
The order also comes just as Biden announced that nearly 22 million people have applied for student loan debt relief in just one week since the federal government released its application for the plan. The president has criticized Republicans challenging his efforts in court.
“Who the hell do they think they are?” Biden said Friday during a speech in Dover, Delaware while addressing students at Delaware State University.
In his address, the president also singled out comments by Sen. Ted Cruz, R-Texas, who said student debt relief is for “slackers” who don’t deserve it.
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This is a developing story and will be updated.
