Joe Biden’s student debt relief plan has hit a legal roadblock.
According to CNN, a federal appeals court temporarily blocked the program on Friday, as it reviews a challenge brought by six GOP-led states. More than a month after Biden announced the plan, Nebraska, Missouri, Arkansas, Iowa, Kansas, and South Carolina filed a lawsuit that claimed Biden could not cancel the debt without congressional approval, which he never received. The states also argued that the debt relief would threaten their tax revenues as well as hurt state-related entities that own or invest in privately held loans.
A lower court judge dismissed the case Thursday, stating the plaintiffs failed to establish “ongoing injury” caused by the program. The states immediately appealed the ruling, and the 8th U.S. Circuit Court of Appeals granted a stay as the case is being reviewed.
The Biden administration has until Monday to respond. The plaintiffs have been asked to issue their reply no later than Tuesday.
POTUS said the debt relief plan aims “to give everybody a little more breathing room.”
Source: Complex.com