US court blocks Biden debt relief rule benefiting defrauded students

A federal appeals court on Monday blocked the Biden administration from proceeding with another piece of its student debt relief agenda, a rule that would make it easier for people who are defrauded by their schools to have their loans forgiven.

At the request of a group representing for-profit colleges, the New Orleans-based 5th U.S. Circuit Court of Appeals prevented the rule from taking effect pending the outcome of an appeal to be heard in November.

The three-judge panel gave no reason for granting the emergency injunction sought by the trade group, Career Colleges and Schools of Texas (CCST), which is appealing a lower-court judge's decision not to block the U.S. Department of Education's rule.

CCST sued in February after the Education Department in October finalized a new rule changing a program that allows students to seek debt relief if their schools mislead them.