U.S. President Joe Biden speaks on the new administration’s efforts to cancel student debt and support borrowers at the White House on October 4, 2023 in Washington, DC.
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The Biden administration takes drastic measures student loan forgiveness program A Missouri judge temporarily blocked the plan again Thursday, a day after a federal judge in Georgia said he would let a restraining order on relief expire.
U.S. District Judge Matthew Scherp in St. Louis, appointed by Republican former President Donald Trump, issued the latest ruling preliminary injunction Oppose Biden’s relief plan.
As a result of the order, the U.S. Department of Education is once again prohibited from forgiving people’s student loans until Serp has a chance to rule on the case.
The latest order limits the 24 hours that federal student loan holders can receive judicial lashings, as a lawsuit filed by seven Republican-led states challenging Biden’s aid package moves from Georgia to Missouri courts.
The states that filed the lawsuits — Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota and Ohio — claim the U.S. Department of Education’s new debt cancellation efforts are illegal.
U.S. District Judge Randal Hall in Georgia on Wednesday established His state does not have standing to sue over the relief program, so his court cannot be the venue for the case.
Hall directed that the case be moved to Missouri because the states claimed Biden’s plan would most harm student loan servicer Mohela, or the Missouri Higher Education Loan Authority.
When CNBC broke the news on Thursday that the restrictions would expire, consumer advocates and borrowers hoped that the Biden administration would quickly move forward with loan forgiveness programs for tens of millions of Americans. The Department of Education has prepared its loan servicers to begin reducing and eliminating people’s debt.
However, Scherp said that possibility is why he delayed administration while he considered the case.
“Allowing the defendants to eliminate the student loan debt at issue here would prevent this court, the U.S. Court of Appeals, and the Supreme Court from reviewing the matter on the back end, thereby allowing the defendants’ conduct to evade scrutiny,” Sherp said. wrote.
This is a developing story, please check back for updates.
