Federal Court Deals Blow to Joe Biden’s Student Loan Relief Rule

A federal appeals court on Monday dealt a blow to Joe Biden’s rule on student loan relief.

The Biden Regime’s student relief rule allows borrowers to obtain ‘relief’ from their loan obligations if they were victims of misleading information by colleges and universities.

Career Colleges and Schools of Texas filed a lawsuit against the Biden Regime’s rule earlier this year arguing the rules were too broad.

A three-judge panel for the 5th Circuit Court of Appeals – one Reagan appointee and two Trump appointees – granted a temporary injunction blocking the rule as the case makes its way through the court.

AP reported:

A federal appeals court on Monday halted a rule from President Joe Biden’s administration that could make it easier to obtain student loan debt relief for borrowers who say they were victims of misleading information about the quality of education they would receive.

At issue is a rule broadening existing policy ending the debt of students who borrowed money to attend colleges and universities that are determined to have misled them on matters such as whether their courses would actually prepare them for employment in their field or the likely salary they would earn upon obtaining a degree.

Career Colleges and Schools of Texas, an association of for-profit higher learning institutions, filed a lawsuit against the rule in February. Among its complaints was that the rules are so broad that they cover even unintentional actions by a college. They also said the rule unconstitutionally gives an executive branch agency, the Department of Education, what amounts to the power of a court in deciding whether to grant claims for debt relief.

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