Appeals court halts Biden's student debt relief plan.
By The Exchange Team
Federal appeals court blocks cancellation of federal student loans under President Biden's debt relief scheme.
The 8th Circuit Court of Appeals issued a stay while it reviews a coalition of six Republican-led states' request for an injunction to stop the forgiveness scheme.
While it is unclear when the court will rule on the motion, it has agreed to an expedited briefing process.
In the meanwhile, the appeals court has ordered the Biden administration to stop cancelling loans as part of the relief effort.
"We're happy with the interim stay," stated Nebraska Attorney General Doug Peterson (R).
Before shifting $400 billion in debt to American taxpayers, the court must evaluate presidential power issues.
Biden's plan would eliminate up to $10,000 in federal college debt for borrowers earning up to $125,000 or $250,000 for married couples.