US appeals court blocks Biden-era student debt relief plan

The Eighth U.S. Circuit Court of Appeals has blocked President Joe Biden’s $475 billion student debt cancellation program, stating that it must not take effect. Judge L. Steven Grasz determined that Education Secretary Miguel Cardona exceeded his authority in creating the Saving on a Valuable Education plan.

Missouri Attorney General Andrew Bailey and other Republican state attorneys general led the lawsuit, which successfully halted debt forgiveness efforts.

The Biden administration argued that its authority for loan forgiveness came from laws designed for veterans, but the court ruled it had overstepped its bounds.