By Reuters via
NBC News
A federal appeals court refused Wednesday to stay a Texas judge's ruling that blocked President Joe Biden's plan to cancel hundreds of billions of dollars in student loan debt.
The New Orleans-based US Court of Appeals for the 5th Circuit has denied the government's request to stay a judge's order issued on November 10 that struck down the $400 billion student debt relief program. in a lawsuit brought by a conservative advocacy group.
Students demonstrate in August 2022 in front of the White House in support of President Joe Biden's plan to forgive student debt. The Washington Post via Getty Images
The decision by US District Judge Mark Pittman, based in Fort Worth, Texas, was one of two that have prevented the Department of Education from moving forward nationwide with this measure to forgive the debt of millions of borrowers.
In parallel, the Biden Administration has asked the Supreme Court to also lift an order from the United States Court of Appeals for the 8th Circuit, based in St. Louis, which, at the request of six states where Republicans govern, had prevented it from canceling the student loans.
[Texas Judge Blocks Biden's Student Debt Forgiveness Program]
The three-judge panel for the 5th Circuit was made up of two Republican-appointed justices and a judge nominated by former Democratic President Barack Obama.
Pittman was appointed by former Republican President Donald Trump.
Biden announced in August that his administration would forgive up to $10,000 of student loan debt for those earning less than $125,000 a year, or $250,000 for married couples.
Students who received Pell Grants to benefit lower-income college students would have up to $20,000 of their debt cancelled.
Six states governed by Republicans sue the Government for the forgiveness of student debt
Sept.
30, 202200:21
During the 2020 presidential campaign, Biden promised to help those who are in debt from college.
Biden's program has drawn opposition from Republicans.
The Congressional Budget Office estimated in September that implementing the debt forgiveness program would cost taxpayers about $400 billion.
About 26 million Americans have applied for student loan forgiveness.
The Education Department had already approved the applications of 16 million people when Judge Pittman issued his ruling blocking the plan.
