Biden’s plan to eliminate student loans temporarily halted — Transcontinental Times

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UNITED STATES: A federal appeals court has temporarily suspended Joe Biden’s plan to forgive billions of dollars in federal student loans while it considers a plea from six Republican-led states to thwart the initiative.

The Biden administration is not allowed to make a decision on the program while the Eighth Circuit Court of Appeals considers the temporary suspension, which was imposed on Friday.

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At Delaware State University, a historically black institution where the majority of students get federal Pell Grants, President Biden announced Friday that nearly 22 million people had applied for the loan relief program within the week. since his administration made the online application available.

Under the proposal announced in August, borrowers with incomes below $125,000 or households earning less than $250,000 a year would have their $10,000 student loan debt forgiven. The additional $10,000 in debt forgiveness will be given to Pell Grant winners, who often show greater financial need.

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According to the administration, the proposal allows partial debt forgiveness for 43 million borrowers, with the possibility of full debt forgiveness of 20 million.

The program will cost nearly $400 billion over the next three decades, according to the Congressional Budget Office. The administration is overstepping its legal authority in a way that would cost the states millions of dollars, U.S. District Judge Henry Autrey told Nebraska Attorney General’s Office attorney James Campbell during a hearing. a hearing on October 12.

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Conservative lawyers, Republican lawmakers and business-oriented organizations have argued that Biden overstepped his authority by taking such sweeping steps without receiving congressional approval. They called it unfair government assistance for the relatively well-off at the expense of tax-paying citizens who chose not to pursue higher education.

Many Democratic politicians seeking re-election in tough races have disavowed the program. During the October 12 hearing, Justice Department lawyer Brian Netter told Autrey that the effects of the Covid-19 outbreak are still being felt. Over the past 2.5 years, he claimed, there has been a dramatic increase in defaults on student loans.

The program has also been the target of other litigation. Supreme Court Justice Amy Coney Barrett on Thursday rejected an appeal by a group of Wisconsin taxpayers seeking an end to the debt forgiveness program.

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