A federal judge has allowed a temporary restraining order against President Joe Biden’s new student loan forgiveness plan to expire. U.S. District Judge Randal Hall in Georgia ruled that the state of Georgia lacked standing to sue over the Biden administration relief effort. If implemented, the plan could relieve tens of millions of Americans, and according to the Center for American Progress, three out of every four federal student loan holders.
This decision stems from a lawsuit filed by seven GOP-led states: Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio. These states argue that the U.S. Department of Education’s debt cancellation initiative is illegal. However, Judge Hall directed that the case be transferred to a Missouri federal court, where claims are centered on how Biden’s plan allegedly threatens the interests of the Missouri Higher Education Loan Authority, a student loan servicer.
Just ahead of the November elections, Hall’s ruling means the Biden administration can move forward with its student loan forgiveness strategy. In a statement, a spokesperson for the U.S. Department of Education praised the ruling, which indicated that Georgia had “no legal basis” to challenge the plan. However, they criticized the ongoing litigation as an effort by Republican officials to obstruct relief for millions of borrowers.
President Biden’s student loan forgiveness initiative aims to assist various groups, including those who owe more than their original loan amounts, long-term borrowers, individuals from low-value schools, and those eligible for existing forgiveness programs but who have yet to apply.
