Appeals court blocks Biden debt relief rule for borrowers who claim schools misled them

A panel of the Fifth Circuit Court of Appeals on Monday blocked a Biden administration rule making it easier to obtain debt relief for student loan borrowers who claim their schools misled them about the quality of education they provided.

A group of for-profit colleges, the Career Colleges and Schools of Texas, had challenged the rule on the grounds that it was too broad, the Washington Times reported. They had also argued that the rule effectively granted the Department of Education pseudo-judicial powers when deciding to whom to grant relief.

The court granted the injunction after a Texas judge previously declined to do so.

The decision is another blow for Biden's student debt relief efforts after the Supreme Court struck down his plan to grant up to $10,000 in debt relief for most borrowers and up to $20,000 for Pell Grant recipients.

Biden has since announced revised plans to implement an income-driven repayment plan that could cost as much as $559 billion, according to the University of Pennsylvania.

Ben Whedon is an editor and reporter for Just the News. Follow him on Twitter.