A federal appeals court issued a nationwide injunction temporarily barring the Biden administration’s student loan debt relief program.
A federal judge originally rejected the challenge brought by the six states — Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina — saying that while they raised"important and significant challenges to the debt relief plan," they ultimately lacked legal standing to pursue the case.
The main obstacle for those hoping to bring a legal challenge against Biden's plan has been finding a plaintiff who can prove they've been harmed by the policy."Such injury is needed to establish what courts call 'standing,'" saidThe appeals court said that Missouri had shown a likely injury in fact from the program, pointing out that a major loan servicer headquartered in the state,, or MOHELA, would lose revenue under the plan.
"And since at least one party likely has standing, we need not address the standing of the other states," the panel concluded.
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