Ruling comes on the heels of federal district judge calling it 'unconstitutional'

As expected, the legal hurdles continue to mount for President Joe Biden’s student loan debt relief plan.

A federal appeals court has issued a nationwide injunction after six states filed a lawsuit that the program not only threatens their future tax revenues, but also requires approval by Congress.

“The injunction will remain in effect until further order of this court or the Supreme Court of the United States,” a three-judge panel of the 8th Circuit Court of Appeals in St. Louis said in its ruling.

Initially, a federal judge rejected the challenge brought by Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina, saying that while they raised “important and significant challenges to the debt relief plan,” they ultimately lacked legal standing. However, the appeals court said that Missouri had shown a likely injury from the program: the Missouri Higher Education Loan Authority (MOHELA), a major loan servicer, would lose revenue under the plan and Missouri’s state treasury department receives money from MOHELA.

“Whatever the eventual outcome of this case, it will affect the finances of millions of Americans with student loan debt as well as those Americans who pay taxes to finance the government and indeed everyone who is affected by such far-reaching fiscal decisions,” the panel said in its ruling.

Last week, the Biden administration stopped accepting applications for relief after a...

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