Legal Boomerang for Biden Loan Forgiveness
Liam Knox
October 7, 2024
Just hours after a federal judge allowed the Biden administration’s new student loan forgiveness plan to proceed, another judge blocked it.
U.S. District Judge J. Randal Hall, a George W. Bush appointee in Georgia, allowed a temporary two-week injunction against the plan to expire Thursday, paving the way for thousands of borrowers to receive debt relief, after finding that Georgia failed to demonstrate that sufficient harm would befall state tax revenue. Hall ordered the injunction last month, after seven Republican-led states filed lawsuits against the Biden administration over its debt-relief plan.
Later that same day, Matthew Schelp, a federal judge in Missouri , one of the other six states attached to the lawsuit, blocked the plan again. The states’ lawsuit rests partially on a claim that the relief plan would disrupt revenue at the Missouri Higher Education Loan Authority.
