Dhe legal dispute over American President Joe Biden’s plan to waive part of the student loans is entering a new round. A Texas district court declared the program illegal. The Justice Department immediately appealed the verdict on Friday night.
Biden’s plan had previously been suspended by an appeals court. The project may only be pushed forward after the court has ruled against the request of several states for an injunction, it decided in October.
The government wants to partially waive the repayment of student loans. Graduates with an annual salary of less than 125,000 dollars (almost 125,400 euros) should get 10,000 dollars waived. For those from low-income families who received their loan from a special grant program, the waiver is as much as $20,000. According to the government, 20 million college-educated people could become debt-free through the scheme – regardless of whether they have completed their studies or not.
Because of the high cost of college and the high cost of living in the United States, many Americans take out a loan and start their careers heavily in debt. With the partial debt relief, Biden is implementing an election promise. Republicans have criticized the plan as “student loan socialism.”
