Biden Administration’s Rules on Student-Loan Discharges Blocked

A federal appeals court halted a policy shift expanding the pool of who qualifies for student loan discharges, dealing another legal blow to the Biden administration’s loan forgiveness efforts.

The plaintiffs’ challenge of two provisions in the US Department of Education’s new rule governing student-loan discharges, based on schools’ misleading or deceptive practices, are likely to prevail on the merits of their claims, and are therefore entitled to a preliminary injunction, the Fifth Circuit said.

“The Rule overturns recent regulations issued by the previous Administration and upends thirty years of regulatory practice,” Judge Edith H. Jones said Thursday for the ...