A U.S. appeals court temporarily blocked the Biden administration from moving forward with its plan to forgive a portion of student loan debt for millions of Americans.
The 8th U.S. Circuit Court of Appeals granted an injunction to six Republican states as they appeal a previous decision tossing out their lawsuit arguing that the loan-forgiveness program is unconstitutional. The court also ordered an expedited briefing to be scheduled for the case.
"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."
According to USA Today, the Biden administration was planning to begin forgiving loans on Sunday, just a week after the application website launched. Under the program, borrowers earning less than $125,000 and households earning less than $250,000 are eligible to have $10,000 in student loan debt forgiven. Those who received Pell grants can get up to $20,000 in loans forgiven.
Officials said that despite the injunction, borrowers can still go to studentaid.gov to apply.
"We continue to encourage working- and middle-class Americans to apply for debt relief," U.S. Secretary of Education Miguel Cardona said. "President Biden and this administration are committed to fighting for the millions of hardworking students and borrowers across the country."