Judges halt Biden rule that forgives student loan debt for those ‘misled’ by colleges

A federal appeals court on Monday put on hold a rule from President Joe Biden’s administration that would make it easier for student loan borrowers who say they were misled over the quality of education they received to obtain debt relief for those loans.

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The judges addressed the issue of canceling the debt of students who borrowed money to attend colleges and universities that have been determined to have misled them on matters such as potential salary or whether the courses even prepared them for their jobs, according to The Associated Press.

In recent months, the Biden administration has been erasing student loan debts for colleges the Department of Education has deemed to have misled borrowers.

Last November, the DOE announced several changes in student debt forgiveness programs aimed at lowering the debt owed by millions of Americans.

Career Colleges and Schools of Texas filed a lawsuit in February that challenged the administration’s rule. Career Colleges and Schools of Texas is an association of for-profit higher learning institutions.

According to the suit, the rules are so broad that they cover even unintentional actions by a college. In addition, the suit said the rule unconstitutionally gives an executive branch agency, in this case, the Department of Education, what amounts to the power of a court in deciding whether to grant claims for debt relief.

Career Colleges and Schools of Texas asked a federal judge in Texas to block the administration’s rule while its case moved through the justice system, but the judge refused.

The case then went on appeal to the 5th U.S. Circuit Court of Appeals, where judges on Monday issued a brief order granting the injunction.

According to the order, the panel is set to hear arguments about the rule in November.

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