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Student Loan Forgiveness: Biden Administration Suffers Another Setback After Court Agrees To Keep Blocking the Plan

President Joe Biden’s effort to eliminate $400 billion in student loan debt was dealt another setback by a federal appeals court.

On Wednesday, the 5th US Circuit Court of Appeals in New Orleans’ panel of three justices declined to keep a Texas judge’s determination that Biden’s forgiveness proposal was unconstitutional.

Student Loan Forgiveness Blocked

As part of Biden’s pledge to help reduce student loan debt, Pittman’s ruling is one of two that have stopped the US Department of Education (DOE) from offering relief to millions of debtors.

The 8th Circuit Court of Appeals in St. Louis issued an injunction prohibiting the DOE from canceling student loans after six Republican states filed a lawsuit challenging the initiatives. Biden’s administration has appealed to the Supreme Court to overturn this decision.

Biden pledged during the 2020 presidential campaign to assist former college students who were burdened with debt.  Republicans have opposed Biden’s plan, arguing that it will shift debt burdens from wealthy elites to lower-income Americans.

The Biden administration and a group of six Republican-led states are battling in court over the legitimacy of the president’s student loan forgiveness program. The Supreme Court announced on Thursday that it will take up the case.

READ MORE: Donald Trump Presidential Bid: Republicans Become Hesitant on Former President’s Fate After Unfavorable Results in US Midterm Elections

Court Considers Continuing Argument About the Program

Student Loan Forgiveness-Joe Biden-Plan-$400 billion
President Joe Biden’s effort to eliminate $400 billion in student loan debt was dealt another setback on Wednesday by a federal appeals court.

In a brief order, the court stated that it will continue to put the program on hold while hearing arguments in February.

Biden extended last week his moratorium on federal student loan payments until June 30, 2023, to give the court more time to consider the case.

White House press secretary Karine Jean-Pierre said, “We welcome the Supreme Court’s decision to hear the case on our student debt reduction proposal for middle and working class students this February.”

The program is also lawful, supported by extensive analysis from administration lawyers. It is important to assist nearly 40 million qualified Americans struggling with student loan debt.

The assistance will help Americans to recover from the pandemic and move forward with their lives, according to the White House.

READ MORE: Will Student Loan Forgiveness Remove Your Tax Refund?

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