Court puts a stay on US President Joe Biden's Student loan waiver scheme. 

Student Loan Forgiveness News:

A federal appellate court in the US has temporarily banned a multi-billion-dollar student loan waiver scheme.

The Eighth Circuit Appellate Court granted the stay while considering a petition from six Republican-ruled states.

These states governed by the Republic Party had appealed for a ban on the loan waiver program in their petition.

In its order, the court asked the Biden administration not to proceed with the program until the appeal is heard.

The big question is what will be its effect on the two crores 20 lakh borrowers who have applied for loan waiver.

The Biden administration had said that the loan waiver would begin in mid-November. But now it seems difficult.

Millions of American students were expected to have their loans completely forgiven under Biden's plan.

Let us tell you that since the application became available this week, about two crore 20 lakh students have applied for a loan waiver.

Under the Student Loan Forgiveness Scheme, a loan of 10-10 thousand dollars for eligible students is to be waived.

According to the Biden administration, 4.3 million lenders are eligible for loan waivers under the plan.