The court action comes as six states argue that President Joe Biden has no grounds to cancel debt for millions of borrowers.
“We are pleased the temporary stay has been granted,” Nebraska Attorney General Doug Peterson said in a statement. “It’s very important that the legal issues involving presidential power be analyzed by the court before transferring over $400 billion in debt to American taxpayers.”
Temporarily blocks Biden student debt relief plan :
Afederal appeals court has temporarily blocked the Biden administration from moving forward with its student debt relief program aiming to forgive billions of dollars in federal student loans.
The administration was prepared to start forgiving loans Sunday, according to court records. The plan, announced in August, 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, will get an additional $10,000 in debt forgiven.
Nebraska Attorney General Doug Peterson said in a statement :
“We are pleased the temporary stay has been granted,” Nebraska Attorney General Doug Peterson said in a statement. “It’s very important that the legal issues involving presidential power be analyzed by the court before transferring over $400 billion in debt to American taxpayers.”
- In a statement Friday, NAACP President Derrick Johnson said student debt relief is essential.
- In his address, the president also singled out comments by Sen.
- Ted Cruz, R-Texas, who said student debt relief is for “slackers” who don’t deserve it.
President Joe Biden speaks about student loan relief at Delaware State University :
President Biden speaks Friday, Oct. 21, 2022 in Dover
Justice Department attorney Brian Netter said at an Oct. 12 hearing that fallout from the COVID-19 pandemic is still rippling and that student loan defaults have skyrocketed over the past two and a half years.