A U.S. appeal court signalled doubts on Thursday about the Biden administration’s halted students’ debt relief plan which is aimed to reduce monthly payments and speed up loan relief for millions of borrowing students. While a petition under a three-judge bench of 8th U.S. Circuit Court of Appeals at St. Paul, Minnesota, the judges raised legal issues of jurisdiction with the secretary of the U.S. Department of Education with relation to the plan.

The case arises from a legal action brought by seven states led by Republicans, who contend that the plan would cost taxpayers at least $400 billion. When the three-judge panel composed only of Republicans appointees reviewed the appeals, it questioned whether the HEA authorizes the scale of loan discharge under IDR provisions.

Trump appointed US Circuit Judge L. Steven Grasz noted that the administration has been disputing this claim, asking, “If the borrower’s payments are reduced to zero and then forgiven, how is that a repayment plan?” On similar lines, Judge Raymond Gruender nominated by George W. Bush siting this as first of its type large scale loan forgiveness program under the HEA provision.

In reply, U.S. Justice Department attorney Thomas Pulham suggested that the only sensible reading of the HEA provision would be the ability to cancel any unpaid loan balance whenever a borrower is done repaying. The following is going to be critical especially in regard to the ability and inclination of the Biden administration to effect student debt relief.