Court stops Biden plan: US university graduates tremble for debt relief

Most university graduates in the US start their careers with a mountain of debt - which is why President Biden wanted to waive some of these loans.

Court stops Biden plan: US university graduates tremble for debt relief

Most university graduates in the US start their careers with a mountain of debt - which is why President Biden wanted to waive some of these loans. But now a court is slowing him down. But the last word has not yet been spoken.

US President Joe Biden's plan to waive part of student loans has been temporarily suspended by a court. The appeals court ruled that the plan could not move forward until it had ruled on several states' requests for an injunction against it. Biden's government plans to start canceling debt soon.

He said Friday that 22 million Americans have already expressed interest and submitted their information to the Department of Education. The six-state lawsuit against the plan was dismissed by a district judge on Thursday. They lodged an objection before the Court of Appeal - and are also demanding an injunction so that the implementation is paused until a decision is made.

In a first reaction, the White House emphasized that the appeals court's decision did not stop the registration process. The plan will continue to be defended in court against Republican legal attacks.

The government wants to partially waive the repayment of student loans. Graduates with an annual salary of less than 125,000 dollars (almost 125,400 euros) should get 10,000 dollars waived. For those from low-income families who received their loan from a special grant program, the waiver is as much as $20,000. According to the government, the scheme could put 20 million college-educated people out of debt - whether they have graduated or not.

Because of the high cost of studying and the high cost of living in the United States, many Americans take out a loan and start their careers heavily in debt. With the partial debt relief, Biden is implementing an election promise. Republicans have criticized the plan as "student loan socialism".