A judge in Missouri has blocked the Biden administration’s student loan forgiveness plan once again after a Georgia court let a previous block expire.
At a Glance
- A judge in Missouri has placed a new injunction on Biden’s loan forgiveness plan.
- A judge in Georgia previously allowed a restraining order on the loan forgiveness plan to expire.
- A lawsuit against the plan was filed by seven GOP-led states.
- The case was recently transferred to Missouri; Georgia dismissed it for lack of standing.
- The Biden administration aims to provide some sort of relief for around 30 million borrowers.
Judge’s Decision Blocks Debt Forgiveness Again
A federal judge enabled President Joe Biden’s student loan forgiveness plan to progress by allowing a temporary restraining order to lapse earlier this week. This legal impasse was allowed to lapse by U.S. District Judge Randal Hall in Georgia, an appointee of President George W. Bush. This development marked a small but brief win for the administration following multiple attempts by GOP-led states to halt the initiative.
Just a day after outlets reported the expiration of the previous injunction, a judge in Missouri quashed the hopes of advocates that the plan would move forward. A new temporary hold has been quickly put in place by U.S. District Judge Matthew Schelp following a request from Republicans.
The case in question originated from seven GOP-led states, namely Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio. These states have argued the plan might financially harm the Missouri Higher Education Loan Authority (Mohela), a significant player in federal student loan servicing operations.
President Biden's student loan forgiveness program can take effect after a judge ruled that he would let a temporary restraining order on the plan expire.
The case will be transferred to the U.S. District Court for the Eastern District of Missouri. https://t.co/rn13HE1r7S
— NBC News (@NBCNews) October 3, 2024
Legal Challenges
Judge Hall ruled that Georgia be removed from the lawsuit due to insufficient standing, leading to the case’s transfer to Missouri. This legal maneuver underscores the regional distribution of standing claims, backed by the concern over Mohela’s potential losses. “Georgia lacks standing because it failed to show an injury,” highlighted the Georgia court’s decision.
This iteration of the Biden admin’s plan could offer full relief to approximately 25 million borrowers, focusing on those with protracted repayment histories, excessive loan amounts, and those attending specific institutions.
Outlook and Advocates’ Support
If the rules are finalized and the case survives the court, they could boost student debt relief recipients who receive at least some support under Biden’s administration to around 30 million from the initially targeted 43 million.
“The fact remains that this lawsuit reflects an ongoing effort by Republican elected officials who want to prevent millions of their own constituents from getting breathing room on their student loans,” said a department spokesperson. Meanwhile, challenges for both sides lie ahead as the case continues its legal journey in Missouri.
Sources
- Biden’s student loan cancellation is put on hold again after day of legal whiplash
- Biden’s student loan forgiveness plan can take effect after judge lets restraining order expire
- Biden-Harris Administration Takes Next Step Toward Additional Debt Relief for Tens of Millions of Student Loan Borrowers This Fall
- Federal Judge Clears Path for Part of Biden’s Student Loan Plan
- Student Loan Forgiveness Lawsuit Transferred, Potentially Opening Path To Relief For 30 Million People
