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The Biden administration’s efforts to cancel federal student loan debt for borrowers who enrolled in its new repayment plan took another Republican-led legal hit Thursday.
The courts temporarily halted parts of the repayment plan in late June, including the provision that grants debt forgiveness for borrowers who have made a certain number of payments.
But on Thursday, the 8th US Circuit Court of Appeals halted that effort in a one-sentence unsigned order.
The court said the new freeze would remain in effect until it decides whether to issue a longer-term block on the effort that was sought by several GOP-led states.
The Department of Education did not immediately respond to a request for comment about what the new court order means for borrowers.
In a separate lawsuit, the Supreme Court is expected to decide soon whether the Biden administration is allowed to continue implementing the SAVE plan while the litigation fully plays out.
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