A federal appeals court St. Louis has thrown up another roadblock for President Joe Biden’s plan to provide millions of borrowers with up to $20,000 apiece in federal student-loan forgiveness
halting the program in one of several cases challenging the debt relief plan.
The Congressional Budget Office has said the program will cost about $400 billion over the next three decades. White House Press Secretary Karine Jean-Pierre said the administration is confident in its legal authority for the student debt relief plan. The law allows the secretary of education to waive or modify terms of federal student loans in times of war or national emergency. The administration said the COVID-19 pandemic created a national emergency.The plan has faced other legal challenges. In October,
The Texas ruling, however, argues that the HEROES Act does not grant authority for mass debt cancellation. The law grants the Education Department wide flexibility during national emergencies, but the judge ruled that it’s unclear whether debt cancellation was a necessary response to COVID-19, noting that Biden recently declared the pandemic over.The legal situation is complicated because of the numerous lawsuits.
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