Federal appeals court rejects Biden's bid to revive student debt plan

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Federal appeals court rejects Biden's bid to revive student debt plan
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The New Orleans-based 5th U.S. Circuit Court of Appeals rejected the Biden administration’s request to pause a judge’s order vacating the $400 billion student debt relief program in a lawsuit pursued by a conservative advocacy group.

A three-judge panel of the 5th Circuit in Wednesday’s brief order declined to put Pittman’s ruling on hold while the administration appealed his decision, but the court directed that the appeal be heard on an expedited basis.

Biden announced in August that the U.S. government would forgive up to $10,000 in student loan debt for borrowers making less than $125,000 a year, or $250,000 for married couples. Students who received Pell Grants to benefit lower-income college students will have up to $20,000 of their debt canceled.

The Congressional Budget Office in September calculated that the debt forgiveness program run would cost taxpayers about $400 billion. Pittman ruled in a lawsuit by two borrowers who were partially or fully ineligible for the loan forgiveness who were backed by the Job Creators Network Foundation, a conservative advocacy group founded by Bernie Marcus, a co-founder of Home Depot.

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