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Judge Clears the Way for Biden’s Student Loan Forgiveness Plan to Move Forward

by Simone
October 3, 2024
Reading Time: 2 mins read
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President Biden Signs Executive Order Protecting Access to Abortions and Reproductive Healthcare Services

(Photo by SAUL LOEB/AFP via Getty Images)

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A federal judge has allowed a temporary restraining order against President Biden’s student loan forgiveness plan to expire, paving the way for potential relief to tens of millions of Americans. The ruling, handed down by U.S. District Judge Randal Hall in Georgia on Wednesday, permits the administration to move forward with its sweeping debt cancellation plan just weeks before the November election.

Biden’s plan, which, combined with previous efforts, could benefit as many as three in four federal student loan holders, faced a legal challenge from seven GOP-led states: Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio. The states argued that the U.S. Department of Education’s plan was illegal, but Judge Hall found that Georgia lacked standing to sue, redirecting the case to Missouri, where the student loan servicer Mohela is based.

The Biden administration welcomed the ruling, with a spokesperson for the U.S. Department of Education stating, “This lawsuit reflects an ongoing effort by Republican elected officials to prevent millions of their own constituents from getting breathing room on their student loans. We will not stop fighting to fix the broken student loan system.”

The plan would forgive debt for four specific groups: borrowers who owe more than they initially borrowed, those who have been repaying loans for decades, students from institutions with low financial value, and borrowers who qualify for existing forgiveness programs but have yet to apply. The case now heads to Missouri for further legal proceedings, but for now, Biden’s student loan relief plan remains in motion.

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Comments 1

  1. Clarence Davis says:
    9 months ago

    It’s about time someone made a positive decision to continue President Biden’s plan to help the College students

    Reply

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