Court Halts Biden's Student Debt Relief Plan

An appeals court ruled against the Biden administration's student debt relief plan, siding with Republican-led states that claim it would be too costly. The decision blocks efforts to lower payments and accelerate loan forgiveness, a move expected to be reversed by Trump's administration if unchallenged.

The Biden administration's push for a student debt relief plan faced a significant setback when an appeals court ruled against it on Tuesday. The 8th U.S. Circuit Court of Appeals determined that the administration lacked the necessary authority to implement the debt relief measure.

The ruling, siding with seven Republican-led states, argues that the plan would impose a financial burden on taxpayers amounting to hundreds of billions of dollars. These states had legally challenged the U.S. Education Department's rule.

The decision implies that the intended reduction in monthly payments and expedited loan forgiveness for millions of borrowers could come to a halt, barring further legal interventions.

(With inputs from agencies.)