US appeals court denies Biden administration request to stay lower court ruling against federal student loan forgiveness plan News
© WikiMedia (Bobak Ha'Eri)
US appeals court denies Biden administration request to stay lower court ruling against federal student loan forgiveness plan

The US Court of Appeals for the Fifth Circuit Wednesday rejected the Biden Administration’s attempt to stay a lower court ruling which found President Joe Biden’s federal student loan forgiveness plan unlawful. The three-judge panel denied Biden’s appeal in a one-page order without explanation. The court also ordered that the case be expedited “to the next available randomly designated regular oral argument panel.”

The Biden administration appealed a November 11 ruling from US District Judge Mark Pittman, which found Biden’s federal student loan forgiveness plan was not covered under the HEROES Act.

This is just the latest in a series of legal blows to the Biden administration’s federal student loan forgiveness plan. On October 23, the US Court of Appeals for the Eighth Circuit also issued a nationwide halt on Biden’s plan after Arkansas, Missouri, Nebraska, Iowa, Kansas and South Carolina brought suit. Since then, the Biden administration has asked the US Supreme Court to vacate the court’s order, allowing the plan to proceed. The Supreme Court has yet to respond. 

The Biden administration announced the federal student loan forgiveness on August 24. The plan would forgive $10,000 in non-Pell Grant federal student loans and $20,000 in Pell Grant federal student loans for individuals making less than $125,000 per year. Since the announcement of the plan, several states have brought suit to stop the plan from going into effect.

The administration indicated to Bloomberg on Wednesday that it intends to appeal the US Court of Appeals for the Fifth Circuit’s ruling to the Supreme Court.