US federal court denies Biden’s student debt system| MENAFN.COM

Wednesday, 01 February 2023 07:03 GMT

US federal court denies Biden’s student debt system


(MENAFN) President Joe Biden's request for a United States federal court to reverse a prior decision that prevented the implementation of his expansive student debt relief program was denied, potentially setting up a Supreme Court showdown as the White House pursues multiple appeals.

On Wednesday, a three-judge panel at the United States Court of Appeals for the 5th Circuit rejected the administration's most recent request and upheld an earlier decision to put an end to the debt forgiveness program.

In a previous decision, District Judge Mark Pittman ruled in favor of two plaintiffs who claimed the program was illegal and did not adhere to "proper rulemaking processes," claiming Biden's proposal to cancel billions of dollars in student debt was a "unconstitutional exercise of Congress's legislative power."

The 5th Circuit Court ordered that Biden's appeal be heard more quickly even though it declined to overturn Pittman's ruling on Wednesday.

The Department of Education is now prohibited from moving through with the debt scheme by an injunction issued by the 8th United States Circuit Court of Appeals, which is situated in St. Louis. This prompted the Biden administration to submit yet another appeal with the Supreme Court.

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