President Joe Biden’s student loan forgiveness initiative is allowed to move forward after a judge let a temporary restraining order against the plan expire on Wednesday. This marks a small victory for the Biden administration as the presidential election approaches.
The lawsuit was initiated in September by seven states, led by Republican governors, including Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio, against Biden and Education Secretary Miguel Cardona.
U.S. District Judge Randall Hall, in his ruling filed in the Southern District of Georgia, determined that Georgia lacked the standing to contest the plan, stating it did not demonstrate a concrete, particularized, actual, or imminent injury. He ordered the dismissal of Georgia as a party in the lawsuit due to lack of subject matter jurisdiction and stated that the venue was improper for the case.
Judge Hall noted that the most appropriate outcome would be transferring the case to a district court where the venue was suitable, specifically to the U.S. District Court for the Eastern District of Missouri.
An Education Department spokesperson emphasized that the court recognized the lack of legal foundation for the lawsuit in Georgia and criticized the ongoing efforts by Republican officials to block relief for borrowers. The spokesperson stated that the proposed regulations could extend debt relief to over 30 million individuals under the Biden-Harris administration and asserted their commitment to providing support and relief to borrowers nationwide.
The states involved in the lawsuit argued that the administration’s plan for mass student debt cancellation could impact state income tax revenue negatively.
Last month, Judge Hall had extended the temporary restraining order on the plan for another 14 days. The Biden administration is expected to announce its final rule regarding the program this month, which has the potential to forgive student debt for over 25 million borrowers.
Biden unveiled a revised plan in April after the Supreme Court struck down the previous student debt forgiveness program last year. That earlier plan aimed to assist 43 million borrowers by canceling up to $20,000 in debt, with a projected cost exceeding $400 billion. The lawsuit was filed after the administration indicated that it would begin reaching out to borrowers with federal student loans regarding their relief options. If finalized this fall, the new rules would increase the total number of individuals receiving student debt relief under Biden’s administration to 30 million, as noted by the Education Department in August.