Appeals court ruling keeps Biden student debt plan on hold
President Joe Biden’s plan to forgive student loan debt for millions of borrowers lost another battle in court on Monday when a federal appeals court panel agreed to a preliminary injunction halting the program while an appeal plays out
By JIM SALTER
Published - Nov 14, 2022, 05:11 PM ET
Last Updated - Jun 23, 2023, 02:55 PM EDT
ST. LOUIS (AP) — President Joe Biden's plan to forgive student loan debt for millions of borrowers was handed another legal loss Monday when a federal appeals court panel agreed to a preliminary injunction halting the program while an appeal plays out.
The plan would cancel $10,000 in student loan debt for those making less than $125,000 or households with less than $250,000 in income. Pell Grant recipients, who typically demonstrate more financial need, would get an additional $10,000 in debt forgiven. The cancellation applies to federal student loans used to attend undergraduate and graduate school, along with Parent Plus loans.
The Congressional Budget Office has said the program will cost about $400 billion over the next three decades.
