Oh no! According to new reports, a federal appeals court has just placed a temporary pause on President Joe Biden’s student loan forgiveness plan.
Biden’s student loan cancellation plan originally sought to forgive up to $20,000 in student loan debt for up to 40 million borrowers. In order to be eligible for the plan, borrowers must have earned less than $125,000 — or less than $250,000 if they are married — in either 2020 or 2021.
Applications for the program just opened a week ago and it is already at risk of being null and void. President Biden recently claimed that nearly 22 million people have already applied for the student loan debt relief program in just one week.
According to court records, the Biden administration was prepared to start forgiving loans as of Sunday, but with this new pause things are up in the air and Biden is criticizing Republicans for challenging his efforts in court.
RELATED: Joe Biden Calling On Congress To Immediately Forgive $10,000 In Student Loan Debt For All
Federal Appeals Court Temporarily Pauses Biden’s Student Loan Forgiveness Plan After 6 States Argue Against Program
Late Friday (October 21), a federal appeals court issued an administrative stay temporarily blocking Biden’s plan to cancel billions of dollars in federal student loans.
It is reported that six Republication-led states are looking to block the loan cancellation program. Those states include: Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina.
Officials from each state argue that President Biden has no grounds to cancel hundreds of millions of dollars in student debt for millions of borrowers.
Attorneys for the aforementioned six states filed their notice late Thursday (October 20) — hours after U.S. District Judge Henry Autrey in St. Louis ruled that they failed to establish standing, adding, “the Court lacks jurisdiction to hear this case.”
It is also reported that separately, the six states also requested from the district court an injunction to block the Biden administration from moving forward and enacting upon their debt cancellation program until the appeals process has finished playing out.
Thus, the Eighth Circuit Court of Appeals has now issued a stay as it considers the motion from the above six states.
RELATED: President Biden Announces The Formal launch Of The Student Loan Forgiveness Application Website
In response, Nebraska Attorney General Doug Peterson said in a statement, “We are pleased the temporary stay has been granted. 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.”
Meanwhile, on Friday (October 21), during a speech in Dover, Delaware, President Bien addressed students at Delaware State University and condemned Republicans. He said, “Who the hell do they think they are? “
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