President Joe Biden’s student loan forgiveness initiative will move forward after a judge allowed a temporary restraining order against the plan to expire on Wednesday. This decision represents a small but significant gain for the Biden administration just ahead of the presidential election.
The lawsuit was initiated in September by seven states led by the Republican Party: Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio, targeting Biden and Education Secretary Miguel Cardona.
U.S. District Judge Randall Hall, in his ruling from the Southern District of Georgia, stated that Georgia did not have the standing to contest the program, as it had failed to demonstrate a specific, concrete, or imminent injury.
Hall emphasized that without standing, Georgia could not remain a party to the case due to a lack of subject matter jurisdiction and supported the federal government’s stance that the venue for the lawsuit was inappropriate.
He pointed out that a plaintiff lacking standing cannot establish a proper venue, leading to the decision to transfer the case to the U.S. District Court for the Eastern District of Missouri, where the venue is deemed appropriate.
A spokesperson for the Education Department expressed gratitude for the court’s recognition that the lawsuit lacks a legal foundation in Georgia. They remarked that the lawsuit represents an ongoing campaign by Republican officials to obstruct financial relief for millions of borrowers.
The proposed rules could expand eligibility for debt relief to over 30 million borrowers under the Biden-Harris Administration. The department reiterated its commitment to legally advocate for additional relief options for Americans struggling with student debt.
The plaintiff states have argued that the administration’s plan for mass student debt cancellation could harm income tax revenues. Last month, Judge Hall extended the temporary restraining order on the plan for 14 additional days.
The Biden administration is set to release the final rule on the debt forgiveness initiative this month, which is expected to benefit more than 25 million borrowers. This revised plan, outlined by Biden in April, follows the Supreme Court’s rejection of a previous debt forgiveness initiative that aimed to help 43 million borrowers by canceling up to $20,000 in student loans, potentially resulting in a cost exceeding $400 billion.
The lawsuit was filed after the administration announced plans during the summer to inform borrowers with federally held loans about their options for relief. If finalized this fall, the new rules could lift the total number of individuals receiving student debt relief during Biden’s presidency to 30 million, according to the Education Department’s August statements.