WASHINGTON (Pakistan Point News / Sputnik - 15th November, 2022) A Federal appeals court issued a nationwide injunction temporarily barring the Biden administration's student loan debt relief program, according to reports by CNBC.
"The injunction will remain in effect until further order of this court or the Supreme Court of the United States," said the ruling, which was decided by a three-judge panel on the 8th Circuit Court of Appeals in St. Louis.
The appeals decision was prompted by six GOP-led states arguing in a lawsuit that the loan relief program threatens their potential future tax revenues and that the plan circumvents congressional authority.
Though a federal judge initially rejected the lawsuit brought by the six states on the grounds that they lacked legal standing to pursue the case, one of the states - Missouri - was able to prove "likely injury" stemming from the losses a major loan servicer headquartered in the state would suffer under the debt relief plan.
"And since at least one party likely has standing, we need not address the standing of the other states," concluded the panel.
Biden's plan would cancel up to $20,000 in federal student debt for borrowers who received a Pell Grant and up to $10,000 for students who did not receive Pell Grants.
