The 8th US Circuit Court of Appeals granted a motion Friday to temporarily block President Biden’s student loan repayment plan.
The appeals court ruled in favor of six Republican-led states that have asked that Biden’s surrender plan be halted while the court processes his request for an injunction.
Biden’s plan, which aims to write off up to $20,000 in student loan debt for Pell Grant recipients in college and up to $10,000 for others who borrowed using federal student loans.
Booklet requirements include having an adjusted gross income of less than $125,000 individually and less than $250,000 if married.
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The appeals court’s decision comes just days after the White House posted the online request for the brochure.
President Biden said the app portal took more than 8 million apps without a problem during its testing period, which was last weekend.
In response to the appeals court decision, White House press secretary Karine Jean-Pierre said the Biden administration will move “full speed ahead” in its preparations while complying with the order.
“We will continue to move full speed ahead in our preparations in compliance with this order. And, the Administration will continue to fight Republican officials suing to block our efforts to provide relief to working families,” said Jean-Pierre. “Tonight’s temporary order does not prevent borrowers from applying for student debt relief in studentaid.gov, and encourage eligible borrowers to join the nearly 22 million Americans whose information the Department of Education already has. It also doesn’t prevent us from reviewing these applications and preparing them for transmission to loan servicers.”
“It is also important to note that the order does not reverse the trial court’s dismissal of the case, nor does it suggest that the case has merit. It just prevents the debt from being condemned until the court makes a decision,” he added.
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“As millions of people apply, we will make sure the system continues to work as smoothly as possible so we can provide student loan relief to millions of Americans as quickly and efficiently as possible,” Biden said.
President Biden spoke about the student loan brochure at Delaware State University on Friday.
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“Our student loan plan lowers costs for Americans as they recover from the pandemic to give everyone a little more breathing room. I want to make it clear who will benefit the most workers. Middle class people,” Biden said. “More than 40 million Americans will benefit from this relief.
This is a developing story. Aislinn Murphy of Fox Business and Reuters contributed to this report.