Federal Court blocks student loan forgiveness act from moving forward


President Joe Biden.

The Federal Court blocked Joe Biden’s student loan forgiveness from moving forward on Friday. It will stay blocked the next court scheduling.  

According to CNBC, the 8th U.S. Circuit Court of Appeals granted that the states’ petition to freeze the loan forgiveness plan until court rules on the request for a longer-term injunction. This will have to wait until Thursday for the decision against the states. It is being appealed. The U.S. District Judge in St. Louis ruled that while the Republicans-led states an important and significant debt relief plan. Also, it lacks legal standing to pursue the case.  

Many other states also think Biden plan circled congressional authority and threatened their tax revenues in the future. The money they earn by their state entities that invest in the student loans. This case had attorneys filed seeking to stop the debt forgiveness plan. All of this is one of the numbers why this plan is but on hold.  

In the policy they are benefiting millions of Americans. The U.S. government will give forgive up to $10,000 in student loans debt for people who make less than $125,000 a year and $250,000 for married couples, according to Joe Biden from the CNBC.   

Biden made a promise that the policy fulfilled during his speech in 2020 to help college and former college students to get them out of debt with student’s loans. The Congressional Budget office calculated the forgiveness in September. In total, it would cost the government about $400 billion dollars to get everyone who is required out of their debt.   

Democrats are anticipating that the policy will boost support for them by the Nov. 8 midterm election. Control of Congress is at stake. Many people are distraught about this decision about student loans and hope it can go on in the future.