US appeals court blocks Biden's student debt relief plan

A federal appeals court temporarily halted Joe Biden's student debt relief program as it considers a motion from six Republican-led states (Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina) to block the program.

The plan, announced in August, would write off $10,000 of student loan debt for those making less than $125,000 or households with incomes of less than $250,000. Pell Grant recipients (undergraduate students with exceptional financial need) would get an additional $10,000 in debt forgiveness. The plan makes 43 million borrowers eligible for some debt forgiveness, with 20 million who could get their debt erased entirely.

Nonetheless, a coalition of Republican states sued, saying the Biden administration overstepped its authority in taking such sweeping action without the assent of Congress, adding that the plan would undercut revenue for state entities that rely on federal student loans for profit.