Written By 
Reviewed By Eli Samll
Background
In August 2022, President Joe Biden announced a plan to forgive up to $20,000 in federal student loan debt for borrowers earning less than $125,000 per year, and up to $10,000 for all other federal borrowers. The plan was met with legal challenges, and in November 2022, a federal judge in Texas blocked the program from taking effect.
The Appeal
The Biden administration appealed the lower court’s ruling to the Eighth Circuit Court of Appeals. The administration argued that the judge had overstepped his authority by issuing an injunction and that the loan forgiveness program was a valid exercise of executive power.
The Ruling
On May 24, 2023, a three-judge panel of the Eighth Circuit Court of Appeals lifted the ban on the student loan repayment plan. The court ruled that the administration had the authority to implement the program and that the judge had erred in issuing the injunction.
Reaction
The ruling was hailed as a victory by the Biden administration and by student loan advocates. The administration said that it would begin forgiving student loans as soon as possible. Student loan advocates said that the ruling would provide much-needed relief to millions of borrowers.
Legal Challenges
The ruling is likely to face further legal challenges. Conservative groups have already vowed to appeal the Eighth Circuit’s decision to the Supreme Court. The Supreme Court has a 6-3 conservative majority, and it is possible that the Court will overturn the Eighth Circuit’s ruling.
Impact
If the student loan repayment plan is allowed to take effect, it will have a significant impact on millions of borrowers. The plan is expected to forgive up to $400 billion in student loan debt. This will provide much-needed relief to borrowers who are struggling to repay their loans.
Conclusion
The Eighth Circuit Court of Appeals’ ruling is a major victory for the Biden administration and for student loan advocates. The ruling allows the administration to move forward with its plan to forgive up to $400 billion in student loan debt. However, the ruling is likely to face further legal challenges, and it is possible that the Supreme Court will overturn the Eighth Circuit’s decision.
