Appeals court temporarily blocks Biden's student loan forgiveness plan

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A federal appeals court has temporarily blocked President Biden's student loan forgiveness plan — halting any debt from being erased. But the administration is encouraging people to continue submitting their applications.

The Friday evening ruling comes less than a week since the application portal went live. Already, nearly 22 million people — more than half of qualifying borrowers — have signed up.
 
The block was issued by the U.S. Eighth Circuit Court of Appeals, which is considering a motion from six Republican-led states to stop the program. It's one of several lawsuits that have aimed to challenge the program. 

Earlier this week, Supreme Court Justice Amy Coney Barrett rejected similar efforts from a Wisconsin taxpayer group.
 
The temporary block "does not reverse the trial court's dismissal of the case, or suggest that the case has merit," White House press secretary Karine Jean-Pierre said in a statement. The order "merely prevents debt from being discharged until the court makes a decision."
 
You should still apply

“The temporary decision does not stop the Biden Administration's efforts to provide borrowers the opportunity to apply for debt relief nor does it prevent the administation from reviewing the millions of applications we have received," Education Secretary Miguel Cardona said.
 
Secretary Cardonda continued to encourage those who have not yet applied for the loan forgiveness to do so immediately. 
 
What’s next?
One of two things can happen in the upcoming days: either the court can issue an injunction and the pause will last longer or it can dismiss the case and the program can carry on.

The federal appeals court is expected to announce a ruling as soon as early this week.