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U.S. stops taking student debt forgiveness applications after ruling

Economy Nov 11, 2022 03:51PM ET
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© Reuters. FILE PHOTO: U.S. President Joe Biden meets with Egypt's President Abdel Fattah el-Sisi (not pictured), in Sharm el-Sheikh, Egypt, November 11, 2022. REUTERS/Kevin Lamarque/File Photo

By Nate Raymond

(Reuters) -The United States government has stopped taking applications for student debt relief, after a federal judge blocked President Joe Biden's loan forgiveness plan, according to a notice on a government website.

A judge in Texas who was appointed by former President Donald Trump ruled on Thursday that Biden's plan to cancel hundreds of billions of dollars in student loan debt was unlawful and must be vacated. The Biden administration is appealing the ruling.

"Courts have issued orders blocking our student debt relief program. As a result, at this time, we are not accepting applications. We are seeking to overturn those orders. If you've already applied, we'll hold your application," the notice says.

About 26 million Americans have applied for student loan forgiveness, and the U.S. Department of Education has already approved requests from 16 million.

The appeal would be heard initially by a three-judge panel of the New Orleans-based 5th U.S. Circuit Court of Appeals, a court dominated by conservative judges who have stymied other Biden policies.

Of the court's 16 active judges, only four were appointed by Democratic presidents. Trump appointed six of them.

White House Press Secretary Karine Jean-Pierre said Thursday the department would hold onto application information "so it can quickly process their relief once we prevail in court."

U.S. District Judge Mark Pittman, an appointee of former Republican President Donald Trump in Fort Worth, called the program an "unconstitutional exercise of Congress's legislative power" by Biden as he ruled in favor of two borrowers backed by a conservative advocacy group.

The litigation could ultimately wind up at the U.S. Supreme Court. Conservative Justice Amy Coney Barrett has already turned back two requests to block the program in lawsuits out of Indiana and Wisconsin, two states she is assigned to assess emergency appeals from.

U.S. stops taking student debt forgiveness applications after ruling
 

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Comments (6)
Red Riley
Red Riley Nov 13, 2022 12:26AM ET
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pay me and my kids back for sacrificing and paying our school fees on time
David Farrell
David Farrell Nov 12, 2022 12:39PM ET
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There goes the Georgia runoff election, to the Dems. way to irk the voter base... again.
Rolf Neuer
Rolf Neuer Nov 11, 2022 12:33PM ET
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If I paid my loans, and a year later this joke of a system is implemented, I'd be annoyed beyond belief. There's no free lunch this time.
First Last
First Last Nov 11, 2022 12:33PM ET
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How about if you have children w/ college loans?
First Last
First Last Nov 11, 2022 12:02PM ET
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Former Trump U. students getting screwed by Trump again.
Stephen Fa
Stephen Fa Nov 11, 2022 11:28AM ET
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Biden's actions to spend taxpayers money on student loans are clearly illegal.
Grab My Grape Sack
Grab My Grape Sack Nov 11, 2022 11:28AM ET
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spending money on roads, water pipes, walls, and fences are so illegal.
carol ruszin
carol ruszin Nov 11, 2022 11:19AM ET
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It matters who you vote for. students deserve better.
Nov 11, 2022 11:19AM ET
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I paid off my student loans, why shouldn't everyone else?
 
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