Monday, December 30, 2024
HomePoliticsFederal judge allows student loan forgiveness plan to move forward | Real...

Federal judge allows student loan forgiveness plan to move forward | Real Time Headlines

U.S. President Joe Biden gestures after speaking about student loan debt relief at Madison Regional Technical College in Madison, Wisconsin, April 8, 2024.

Andrew Caballero-Reynolds | AFP | Getty Images

A federal judge will end a temporary restraining order against the Biden administration’s sweeping new student loan relief plan that could bring relief to tens of millions of Americans.

If combined with the administration’s previous efforts, the plan would benefit as many as three-quarters of federal student loan holders, one person said. estimate Courtesy of Center for American Progress.

U.S. District Judge Randal Hall of Georgia, appointed by former Republican President George W. Bush, publish The Biden administration won Wednesday night.

The ruling means President Joe Biden may move forward with his administration’s student loan relief plan just weeks before the November election.

The development comes amid lawsuits filed by seven Republican-led states challenging the aid package. Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota and Ohio say the U.S. Department of Education’s new debt cancellation measures are illegal.

However, Hall found that Georgia lacked standing to sue over the relief program and therefore could not be the venue for the case.

Judge directs case to be moved to Missouri as state claims Biden plan would do most harm to student loan servicers call meor the Missouri Higher Education Loan Authority.

A spokesman for the U.S. Department of Education said it appreciated the judge’s ruling that Georgia had “no legal basis” to sue, but slammed the Republican campaign to block relief.

“The fact remains that this lawsuit reflects the ongoing efforts by Republican elected officials to prevent millions of their own constituents from getting breathing room on their student loans,” they said.

“We will not stop working to repair our broken student loan system and provide support and relief to borrowers across the country.”

Biden’s plan would forgive student debt for four categories of borrowers: those who owe more than their initial outlay; those who have been paying off the debt for decades; students from schools with lower economic value; and those with debt under existing programs. People who are eligible for loan forgiveness but have not yet applied.

This is breaking news. Please refresh for updates.

RELATED ARTICLES

Most Popular

Recent Comments