Court Blocks Biden's Student Debt Relief: A Political Showdown

A U.S. judge temporarily halted President Biden's proposal to forgive $73 billion in student debt, favoring six Republican state attorneys who argued it oversteps authority. The blocked regulation, which targets 27.6 million borrowers, faces legal challenges amidst accusations of political motivations ahead of the 2024 election.

A U.S. judge has temporarily blocked the Biden administration's recent proposal to forgive student debt, yet to be finalized. This decision marks a win for six Republican state attorneys general who filed a legal challenge.

Currently, $73 billion worth of student debt affecting approximately 27.6 million borrowers stands at the center of this legal confrontation. The Republican attorneys claim that the Department of Education is overreaching and that substantial policy decisions should be handled by Congress.

The ruling comes as the U.S. gears up for the upcoming November 2024 presidential election, where political credit for such proposals could influence voter sentiment. The White House defends the proposal, citing the broken state of the current student loan system.

(With inputs from agencies.)