News Update

States to appeal dismissal of student debt relief lawsuit

Six Republican-led states are looking to appeal the dismissal of a lawsuit against President Joe Biden’s student debt relief plan. 

The states asked Thursday night that the federal appeals court reconsider it, hours after a U.S. district judge in St. Louis ruled that the courts did not have jurisdiction to hear the case because the states lacked standing. The states also asked for an injunction to prevent the debt relief from moving forward until the appeals process ends.

Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina argue that moving forward with the student debt relief would cause them economic injury by causing them to lose tax revenue and incur other losses from federal student loans that state-related entities manage, own or invest in, according to Politico.

The appeal request comes just as Supreme Court Justice Amy Coney Barrett rejected an appeal from a Wisconsin taxpayers group attempting to stop the debt relief program. 

Applications for student debt forgiveness launched Monday and will remain open through December 2023. Individuals earning under $125,000 and households earning less than $250,000, qualify for up to $20,000 of relief.