Judge’s Surprising Decision Delays Massive Student Loan Relief

Judge with gavel and scales of justice behind.

A federal judge has extended a block on the Biden administration’s $147 billion student loan forgiveness plan, leaving its future uncertain.

At a Glance

  • A federal judge has extended a temporary restraining order against the Biden administration’s student loan forgiveness plan.
  • The extension threatens the White House’s goal to provide financial relief before the Nov. 5 presidential elections.
  • Judge Randal Hall will maintain the order for an additional 14 days.
  • The restraining order is a setback for Biden’s efforts to cancel federal student loans, a promise from his 2020 campaign.
  • The lawsuit was brought by seven GOP-led states.

Federal Judge Extends Block on $147 Billion Student Loan Cancellations

U.S. District Judge Randal Hall extended the temporary restraining order against President Biden’s plan to cancel $147 billion in student loans. This extension follows legal challenges from seven GOP-led states: Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio. The states argue the cancellation is illegal and accuse the administration of attempting to implement the plan secretly. Hall, appointed by George W. Bush, first issued the order on September 5.

The judge cited “good cause” for extending the order for 14 more days to review the plaintiffs’ request for a preliminary injunction and the administration’s request to dismiss the case. The extension hampers the Biden administration’s goal of providing debt relief to millions before the upcoming elections, a key promise from Biden’s 2020 campaign.

Impacts on Borrowers and Upcoming Elections

President Biden’s plan aims to forgive up to $20,000 in interest for millions of borrowers, potentially benefiting three in four federal student loan holders. However, the plan faces staunch opposition in conservative states, and both Republican officials and judges have consistently blocked efforts to provide student debt relief. This legal gridlock has put the White House in a difficult position as it seeks voter support ahead of the November 5 elections.

The Biden administration had previously alerted millions of borrowers about the upcoming debt forgiveness, but it has been unable to proceed due to ongoing legal battles. The Education Department stated it would not begin forgiving debt until legally allowed. The plan also targets long-term payers from certain institutions and non-degree programs deemed non-valuable by the department.

Previous Legal Challenges and Rulings

The Supreme Court struck down Biden’s previous wide-scale student loan forgiveness attempt in June 2023 with a 6-3 ideological split decision. The current legal challenges echo those issues, with judges in Kansas and Missouri issuing nationwide preliminary injunctions against the administration’s SAVE plan, estimated at $475 billion. Despite these setbacks, the administration has provided over $168 billion in relief for more than 4.7 million borrowers through other means.

The Biden administration remains determined, with plans to publish its final rule on a revised student loan forgiveness plan next month. If implemented, the new plan could affect more than 25 million borrowers, providing significant relief amidst widespread financial challenges. However, the court’s upcoming decision will ultimately determine the fate of these plans.

Sources:

  1. Federal judge extends block on Biden’s student debt forgiveness plan
  2. Federal judge delivers another blow to Biden’s student loan handout plan: ‘Good cause exists’
  3. Judge keeps Biden’s latest student loan forgiveness plan blocked
  4. Federal judge temporarily blocks Biden’s student loan forgiveness plan
  5. Judge extends temporary restraining order against Biden’s student debt forgiveness plan
  6. Federal court extends block on Biden’s student debt relief plan

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