A federal appeals court has granted an injunction to block President Joe Biden's new rules aimed at providing easier debt relief for student borrowers who were deceived or defrauded by universities. The injunction was requested by Career Colleges & Schools of Texas, a group representing over 70 for-profit higher education institutions in Texas, while the ruling is being appealed.
A three-judge panel on the U.S. Court of Appeals for the 5th Circuit granted an injunction request by Career Colleges & Schools of Texas, a group that leads more than 70 for-profit higher education institutions in Texas, while the ruling is under appeal.The two-page order did not explain the reasoning for the decision but noted that the case would be heard this fall.
The group's lawsuit stems from an April filing against the Education Department. The Biden administration rules went into effect in July and aims to expand the number of circumstances that justify loan relief. In July, the Education Department wrote in a legal filing that CCST's"alleged injuries are entirely speculative and, in any event, insufficient to constitute irreparable injury directly attributable to the Rule." It added that even if the court concluded that the group established some irreparable injury, then"that threatened injury plainly could not outweigh the damage that an injunction would cause the public interest.
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