Appeals Court Blocks Biden Plan to Forgive Debt of Defrauded Students

A federal appeals court blocked a Biden administration proposal Monday to help people who are defrauded by their schools have their loans forgiven.

The Details: The U.S. 5th Circuit Court of Appeals issued an injunction to prevent the government from implementing the new regulations while it considers a lawsuit brought by Career Colleges and Schools of Texas (CCST).

Key Quotes: CCST called the rule an illegal plan "to accomplish massive loan forgiveness for borrowers and to reallocate the correspondingly massive financial liability to institutions of higher education." An Education Department spokesperson said the administration "won't back down in our efforts to take on predatory colleges, provide relief to borrowers who have been cheated or had their school close, and hold institutions accountable for deceptive schemes."

For Context: The administration introduced the proposed guidelines shortly after the Supreme Court rejected Biden's $430 billion student loan forgiveness plan in June. 

How the Media Covered It: Left-rated outlets tend to frame student loan forgiveness in a more positive light than right-rated sources do. Fox Business (Lean Right) said the rejection was "the latest defeat for Biden's efforts to forgive student loans across the country." Washington Post (Lean Left) said Biden's plan to "ease the path to student loan forgiveness for people who were defrauded" is in doubt.