President Joe Biden’s student loan forgiveness initiative can move forward following a judge’s decision to let a temporary restraining order on the program lapse. This ruling comes as a modest win for the Biden administration just before the upcoming presidential election. The lawsuit was initiated in September by seven Republican-led states: Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio, against the President and Education Secretary Miguel Cardona.
U.S. District Judge Randall Hall stated in his order, issued in the Southern District of Georgia, that Georgia does not have the standing to challenge the plan, as it failed to demonstrate any concrete or imminent harm. He noted that without standing, the court could dismiss Georgia from the lawsuit due to the lack of subject matter jurisdiction and would also consider the defendants’ arguments regarding the venue.
The judge concurred with the federal government’s stance that the venue for the lawsuit was improper. Without standing, Georgia could not establish a valid venue where there would otherwise be none, Hall explained.
He indicated that transferring the case to a district with the proper venue is the “most equitable result,” moving it to the U.S. District Court for the Eastern District of Missouri.
An Education Department spokesperson remarked that while they appreciate the court’s recognition of the lawsuit’s lack of legal foundation in Georgia, it highlights an ongoing attempt by Republican officials to hinder student loan relief for millions of their constituents. They emphasized that the proposed rules would enable over 30 million borrowers to qualify for student debt relief under the Biden-Harris administration. The department will continue to legally defend these initiatives and strive to reform the flawed student loan system.
The states involved in the lawsuit have asserted that the proposed mass cancellation of student debt could adversely affect income tax revenue. Last month, Judge Hall had extended a temporary restraining order on the plan for an additional two weeks.
This month, the Biden administration is set to release its final rules on the program, potentially canceling student debt for over 25 million borrowers. The revised plan was introduced by Biden in April after the Supreme Court invalidated the original student debt forgiveness initiative, which aimed to assist 43 million borrowers by canceling up to $20,000 in debt at an estimated cost exceeding $400 billion.
The lawsuit was filed following the administration’s announcement over the summer that it would begin reaching out to borrowers with outstanding federally held student loans regarding relief options. If the new rules are finalized this fall, the Education Department estimates that a total of 30 million individuals will benefit from student debt relief during Biden’s administration.