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Student loan forgiveness still on hold following latest court ruling

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President Joe Biden’s plan to provide student loan forgiveness for millions of Americans remained on hold following a federal appeals panel ruling. Monday’s ruling allowed for a stay on the student loan forgiveness program to continue while the court considered an effort to block the plan.

That effort is led by six states: Nebraska, Missouri, Iowa, Kansas, Arkansas and South Carolina. Part of the states’ argument centered around the financial harm the debt cancellation would cause the Missouri Higher Education Loan Authority.

This unanticipated financial downturn will prevent or delay Missouri from funding higher education at its public colleges and universities,” the 8th U.S. Circuit Court of Appeals in St. Louis stated. In a statement on the ruling, Attorney General Doug Peterson, R-Neb., added the ruling “recognizes that this attempt to forgive over $400 billion in student loans threatens serious harm to the economy that cannot be undone.”

“It is important to stop the Biden administration from such unlawful abuse of power,” Peterson said.

The effort from the six states initially failed, after U.S. District Judge Henry Autrey ruled the states failed to establish standing. This case is different than the recent Texas case, in which U.S. District Judge Mark Pittman ruled last week that President Biden had overstepped his authority in creating the debt relief program without congressional approval.

Following the Texas ruling, the White House stopped accepting applications for student loan forgiveness. About 26 million people had applied, and 16 million applications have been approved. However, because of court rulings, none of the relief has actually gone out.

“Courts have issued orders blocking our student debt relief program,” the Education Department said on its federal student aid website. “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 Associated Press contributed to this report.

IN LESS THAN ONE WEEK…TWO COURT RULINGS HAVE SIDED AGAINST PRESIDENT BIDEN’S STUDENT LOAN FORGIVENESS PROGRAM.
PUTTING REPAYMENTS NOT ONLY ON PAUSE…BUT IN JEOPARDY OF EVEN HAPPENING.
APPLICATIONS FOR DEBT FORGIVENESS ARE NO LONGER BEING ACCEPTED.
YESTERDAY AN APPEALS COURT RULED THAT A STUDENT LOAN SERVICING AGENCY COULD FACE FINANCIAL REPERCUSSIONS FROM THE PROGRAM.
THE JUDGE RULED THE STUDENT LOAN FORGIVENESS PROGRAM MUST PAUSE WHILE THE COURT FURTHER CONSIDERS ITS CASE.
THE WHITE HOUSE COULD TAKE THE APPELATE COURT’S RULING TO THE SUPREME COURT…TO TRY AND BYPASS THE ORDER.
BUT EVEN IF THE ADMINISTRATION CAN JUMP THROUGH ONE HOOP…
THERE’S ANOTHER ONE WAITING.
A TEXAS JUDGE LAST WEEK RULED THE PRESIDENT OVERREACHED.
THE BIDEN ADMINISTRATION ALREADY SAID IT’S APPEALING THAT RULING.
IT’S SOMETHING PREDICTED SINCE THE VERY BEGINNING OF THE ANNOUNCEMENT.
LEGAL CHALLENGES OUT OF THE WOODWORK.
MANY ALREADY RULED AGAINST…BUT IT JUST TAKES ONE CASE TO BE UPHELD IN COURT TO CANCEL STUDENT LOAN CANCELLATION.

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President Joe Biden’s plan to provide student loan forgiveness for millions of Americans remained on hold following a federal appeals panel ruling. Monday’s ruling allowed for a stay on the student loan forgiveness program to continue while the court considered an effort to block the plan.

That effort is led by six states: Nebraska, Missouri, Iowa, Kansas, Arkansas and South Carolina. Part of the states’ argument centered around the financial harm the debt cancellation would cause the Missouri Higher Education Loan Authority.

This unanticipated financial downturn will prevent or delay Missouri from funding higher education at its public colleges and universities,” the 8th U.S. Circuit Court of Appeals in St. Louis stated. In a statement on the ruling, Attorney General Doug Peterson, R-Neb., added the ruling “recognizes that this attempt to forgive over $400 billion in student loans threatens serious harm to the economy that cannot be undone.”

“It is important to stop the Biden administration from such unlawful abuse of power,” Peterson said.

The effort from the six states initially failed, after U.S. District Judge Henry Autrey ruled the states failed to establish standing. This case is different than the recent Texas case, in which U.S. District Judge Mark Pittman ruled last week that President Biden had overstepped his authority in creating the debt relief program without congressional approval.

Following the Texas ruling, the White House stopped accepting applications for student loan forgiveness. About 26 million people had applied, and 16 million applications have been approved. However, because of court rulings, none of the relief has actually gone out.

“Courts have issued orders blocking our student debt relief program,” the Education Department said on its federal student aid website. “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 Associated Press contributed to this report.

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