Biden's new student debt relief policy blocked by appeals court

A federal appeals court granted an injunction to block President Joe Biden's new rules that intend to make it easier for student borrowers to have their debts relieved if they were misled or defrauded by a university.

A three-judge panel on the U.S. Court of Appeals for the 5th Circuit granted an injunction request by Career Colleges & Schools of Texas, a group that leads more than 70 for-profit higher education institutions in Texas, while the ruling is under appeal.

The two-page order did not explain the reasoning for the decision but noted that the case would be heard this fall.

“It is ordered that appellant’s opposed emergency motion for injunction pending appeal of the borrower-defense and closed-school provisions of a 'rule' governing student loan discharges is GRANTED,” according to the brief decision.

The group's lawsuit stems from an April filing against the Education Department. The Biden administration rules went into effect in July and aims to expand the number of circumstances that justify loan relief.