Biden Administration responding after new student debt relief program gets put on hold

By Elizabeth Schulze, ABC

The Biden Administration is now responding to a ruling from a federal appeals court that put the new student loan forgiveness program on hold.

Americans can continue to apply for student debt relief under the new program, but it's unclear when or if they will see their debts cancelled.

The lawsuit comes from six Republican-led states which seek to put an end to the plan. It argues that President Biden overstepped his authority. Monday night, the Justice Department filed a response to a federal appeals court that sided with a lawsuit from Republican-led states and temporarily blocked the debt forgiveness plan. They argue the states failed to prove they would be injured by the plan.

Now, with student debt relief for millions of Americans on hold for now, the Biden Administration is firing back. As the legal battle is putting millions of borrowers in limbo.

"I don't want to hear it from MAGA Republicans, officials who had hundreds of thousands of dollars of debt, even millions of dollars in pandemic relief loans forgiven," President Biden said. "Who now are attacking me for helping working class and middle class Americans."

The plan cancels up to $10,000 in student loan debt for individuals earning less than $125,000 a year.

A reply from the GOP-led states is expected Tuesday.

The White House is urging Americans to continue to apply for the debt relief, saying the court's decision does not stop the education department from accepting and reviewing applications.