On Monday, a federal appeals court stopped the Biden administration from implementing a rule that could have made it simpler for people who were scammed by their colleges to have their loans canceled as part of its student debt relief strategy.
The 5th U.S. Circuit Court of Appeals in New Orleans delayed the implementation of the law pending the resolution of an appeal that will be considered in November at the demand of an organization that represents for-profit institutions.
The trade association Career Colleges and Schools of Texas (CCST), which has appealed the lower-court judge’s judgment not to stop the U.S. Department of Education’s rule, requested an emergency injunction, but the 3-judge panel did not provide any justification for its decision.
Once the Education Department published a new rule altering a program that permits students to ask for debt relief if their colleges tricked them, CCST filed a lawsuit in February.