President Joe Biden‘s student loan forgiveness plan is temporarily on hold again, one day after a Missouri judge overruled a federal judge in Georgia who had allowed a restraining order against the relief to expire.
Missouri judge issues hold until he reviews the case
According to court documents, St. Louis-based U.S. District Judge Matthew Schelp, appointed by former Republican President Donald Trump, issued a preliminary injunction that prevents the U.S. Department of Education from canceling billions of dollars in student loan debt for borrowers nationwide until he reviews the case.
The District Court in Missouri ruled that the U.S. District Court for the Southern District of Georgia should be dismissed from the lawsuit, citing a “lack of standing.” However, Missouri now has the green light to continue the case, demonstrating its “clear standing” in the matter.
The Associated Press reported that six Republican states requested the injunction just hours before U.S. District Judge Randal Hall in Georgia declined to extend the restraining order that would block the plan.
Georgia federal judge sends the case to Missouri
Hall agreed to have the case transferred to Missouri because the state argued that Biden’s plan would prevent student loan servicer Mohela from bringing in revenue since all funding is based on the borrowers it serves.
Missouri State Attorney General Andrew Bailey had to act fast, requesting Schelp to enter the preliminary injunction because the Education Department could forgive “hundreds of billions of dollars in student loans as soon as Monday,” per AP.
“This is yet another win for the American people,” Missouri Attorney General Andrew Bailey said in a statement obtained by the outlet. “The Court rightfully recognized Joe Biden and Kamala Harris cannot saddle working Americans with Ivy League debt.”
The U.S. Department of Education responds
A spokesperson for the Education Department called Republican state officials for seeking to “to prevent millions of their own constituents from getting breathing room on their student loans.”
“We will continue to vigorously defend these proposals in court. We will not stop fighting to fix the broken student loan system and provide support and relief to borrowers across the country,” the department said in a statement obtained by Reuters.
Blavity reported that Biden has proposed mass student loan debt over the last three years since taking office. The relief plan has had several setbacks but borrowers nationwide have had their loans forgiven since 2022.
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