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Supreme Court to weigh in on Biden's student loan forgiveness program

The Court of Appeals in New Orleans on Wednesday declined to end an injunction against President Joe Biden's student loan forgiveness program. File Photo by Jim Lo Scalzo/UPI
1 of 3 | The Court of Appeals in New Orleans on Wednesday declined to end an injunction against President Joe Biden's student loan forgiveness program. File Photo by Jim Lo Scalzo/UPI | License Photo

Dec. 1 (UPI) -- The U.S. Supreme Court will hear oral arguments on President Joe Biden's $400 billion student loan forgiveness program.

The court announced the order Thursday, putting off an imminent decision on student loan forgiveness to more thoroughly weigh its legality. Oral arguments will be heard beginning in February. Until a ruling is made, the program will remain on hold. A decision is expected by June, according to CNN.

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The announcement comes after a second federal appeals court blocked the debt relief program on Wednesday. The Fifth Circuit Court of Appeals in New Orleans declined to overturn a ruling by Judge Mark Pittman of the U.S. District Court for the Northern District of Texas stating Biden's effort to cancel student debt was illegal.

The ruling upheld Pittman's order while the court weighs Biden's appeal, adding it would expedite the case.

Earlier this month, the Eighth Circuit Court of Appeals in St. Louis also blocked the loan forgiveness plan in response to another lawsuit.

The White House had already put student loan payments on hold until June 30, while his forgiveness program works its way through the courts.

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The debt relief plan would grant as much as $10,000 in loan forgiveness for people making less than $125,000 annually and up to $20,000 for Pell grant recipients.

The Biden administration swiftly asked the U.S. Supreme Court to lift the lower-court injunction when it was rejected by the New Orleans appeals court. The White House said on Wednesday it will likely "seek relief from the Supreme Court in this case if this court declines to stay the district court's judgment."

The high court also could combine the two cases and make one decision.

The White House said more than half of borrowers eligible for forgiveness had applied for the program before courts temporarily halted it.

The Education Department had approved some 16 million applications. The department told borrowers that the administration will discharge the debt if and when it wins in court.

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