Appeals Court Blocks Biden Plan to Forgive Debt of Defrauded Students
Appeals court halts new Biden rules on debt relief for defrauded students
The future of the Biden administration’s rules to ease the path to student loan forgiveness for people who were defrauded borrowers by their college or whose schools abruptly close is in doubt.
On Monday, the U.S. Court of Appeals for the 5th Circuit issued an injunction to prevent the government from implementing regulations that took effect last month while it considers a lawsuit brought by Career Colleges and Schools of Texas, which represents 70 for-profit colleges. The court will hear the case on Nov. 6.
US court blocks Biden debt relief rule benefiting defrauded students
A federal appeals court on Monday blocked the Biden administration from proceeding with another piece of its student debt relief agenda, a rule that would make it easier for people who are defrauded by their schools to have their loans forgiven.
At the request of a group representing for-profit colleges, the New Orleans-based 5th U.S. Circuit Court of Appeals prevented the rule from taking effect pending the outcome of an appeal to be heard in November.
Biden's new student debt relief policy blocked by appeals court
A federal appeals court granted an injunction to block President Joe Biden's new rules that intend to make it easier for student borrowers to have their debts relieved if they were misled or defrauded by a university.
A three-judge panel on the U.S. Court of Appeals for the 5th Circuit granted an injunction request by Career Colleges & Schools of Texas, a group that leads more than 70 for-profit higher education institutions in Texas, while the ruling is under appeal.