GThere is another court decision against America’s President Joe Biden’s plan to waive part of student loans. An appeals court on Monday agreed to several states’ requests for an injunction. It initially suspended the program about three weeks ago. The judges now argued, among other things, that the debt relief could harm the financial situation of the plaintiff state of Missouri.
The White House reiterated its intention to push through the plan against all odds.
Last week, a district court in the state of Texas declared the debt relief illegal and ordered a freeze. The Justice Department immediately appealed the verdict.
Up to $20,000
The government wants to partially waive the repayment of student loans. Graduates with an annual salary of less than 125,000 dollars (almost 12,500 euros) should get 10,000 dollars waived. If they come from low-income families and have received their loan from a special support program, the planned waiver is even $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 studying 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.”
