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Biden Student Debt Forgiveness Plan on Hold, Appeals Court Rules

WASHINGTON (Michigan News Source) – President Joe Biden’s announcement to forgive student loan debt for millions of student, and forgo the passage of such a plan through Congress, has lost another court battle.

On Monday, a federal appeals court panel agreed to a preliminary injunction halting the program while an appeal plays out.

The ruling by the three-judge panel from the 8th U.S. Circuit Court of Appeals in St. Louis came days after a federal judge in Texas blocked the program, citing the plan sidestepped Congress’ power to make laws.

Biden’s 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.

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The legal challenges have created confusion about whether borrowers who expected to have debt canceled will have to resume making payments come January 1, 2023. That’s when a pause in payment prompted by the COVID-19 pandemic is set to expire.

Katie Heid
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Katie anchors weekday radio newscasts for Michigan News Source from noon until 7 p.m. on various affiliates. She also contributes daily articles to Michigan News Source. When she's not scouring the state for news, she loves spending time with her husband and two sons.