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Student loan debt relief policy setback

The Biden Administration was dealt another setback in court Wednesday in its effort to revive a student loan debt relief policy. A second federal appeals court rejected a bid to put a ruling blocking the President's student debt relief policy on hold.

The court ruled Wednesday night that it would not pause a ruling from a Texas Judge striking down the policy while an appeal of the ruling played out.

The move sets the stage for the U.S. Justice Department to take the case to the U.S. Supreme Court, which is already considering a separate request from the Biden Administration to reverse an order blocking the loan forgiveness program.

They did not explain their reasoning for rejecting the administration's request, but the panel ordered the full appeal to be considered on an expedited basis.

Federal student loan payments that had been paused during the Covid-19 pandemic were set to resume in January.

But the Biden Administration again extended the pause period as legal battles continue.

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Noelia Gonzalez

KVIA ABC-7 Good Morning El Paso Producer


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