Biden Administration Dealt Another Setback In Student Loan Debt Relief

The White House / Adam Schultz

WASHINGTON, D.C. (Newsource) – The Biden Administration was dealt another setback in court Wednesday in its effort to revive a student loan debt relief policy. 

A second federal appeals court rejected a bid to put on hold a ruling blocking the President’s student debt relief policy. 

The court ruled Wednesday night that it would not pause a ruling from a Texas judge striking down the policy while an appeal of the ruling played out. 

The move sets the stage for the U.S. Justice Department to take the case to the U.S. Supreme Court, which is already considering a separate request from the Biden Administration to reverse an order blocking the loan forgiveness program. 

They did not explain their reasoning for rejecting the administration’s request, but the panel ordered the full appeal to be considered on an expedited basis. 

About 26 million people had applied for student loan relief prior to the recent court decisions with 16 million of those applications being approved. 

Federal student loan payments that had been paused during the COVID-19 pandemic were set to resume in January. 

But the Biden Administration again extended the pause period as legal battles continue. 

The payment pause will last until 60 days after the litigation is resolved. 

Biden’s program would offer up to $20,000 dollars of debt relief to millions of qualified borrowers. 

It has drawn criticism, especially from republicans, and drummed up legal challenges. 


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