a federal appeals court United States of America temporarily blocked student loan forgiveness program initiated by the administration Biden After six Republican-led states filed two objections to the measure.
The U.S. Court of Appeals for the Eighth Circuit ruled on Friday: policy to write off thousands of dollars in debt loans students should be “suspended” Until objections by Republicans are resolved in court, as reported by ‘The Hill’.
However, the temporary order Does not prevent borrowers from continuing to apply for student debt relief or, White House spokeswoman Karine Jean-Pierre said in a statement, that when the blockade ends, they should stop reviewing applications and be ready.
Biden’s plan raises Cancellation of $10,000 debt received by all youth earning less than $125,000 a year. According to the White House, donations amount to $20,000 for those receiving public grants for higher education.
North America Administration It is estimated that 45 million citizens have this type of debt., for a total of 1,600 million dollars. About 16 percent of these people do not have the resources to pay for them, and the burden is particularly heavy on traditionally vulnerable groups such as the black community.
US President Joe Biden announced this Friday. More than 22 million people have applied for amnesty so far. student loan debt, according to the newspaper in question.
Still, attorneys general in some states Republicans submitted their demands in September He demanded the cancellation of the measure, arguing that the Biden administration “does not have the authority to cancel the debt because Congress does not allow it”.
However, despite the Republican Party’s many attempts to lift the measure, The United States Government argued that it was authorized to cancel the debt. through the Higher Education Student Assistance Opportunities Act 2003. Legislation allows the Secretary of Education to write off student loan borrowers in times of “national emergency.”
“We will continue our preparations at full speed in accordance with this order. Administration Will Continue Fighting Republican Officials “The White House spokesperson filed suit to hinder our efforts to provide assistance to working families,” he said.
Biden’s intention to cancel the debt, relieving personal finances for millions of Americans Facing two economic crises in a short time.
Also, the US president’s approach is this: measure affects low-income peopleare the ones most likely to default on their loans. Specifically, the black community is the minority that will benefit most from debt forgiveness.