Judge Pauses Biden's Student Loan Plan Again

On Thursday, a federal judge in Missouri hit the brakes on President Joe Biden’s student loan cancellation plan. The move came just as it seemed the plan might finally move forward after another judge allowed an earlier pause to expire. Six Republican-led states had rushed to request this new hold, arguing that the Education Department could start canceling loans as early as Monday. Judge Matthew Schelp quickly granted their request, saying it was a straightforward decision. The Education Department is not giving up easily. They plan to fight for the proposal in court. The department pointed out that these Republican officials are trying hard to stop millions of their own constituents from getting some relief on their student loans. Biden's plan has been stuck since September when several states sued, saying he didn’t have the power to do this. On Thursday, a judge in Georgia decided not to extend the pause because he found that Georgia can’t sue over this case. The case was then transferred to Missouri, which the judge said has the right to challenge Biden's plan. This meant a brief hope for those supporting loan cancellation was dashed again, as another judge stopped it from moving forward.

Biden’s plan aims to help about 30 million borrowers by canceling some of their debt. It would give relief to people who have been paying loans for many years or went to programs that left them with a lot of debt compared to their income. Biden had directed the Education Department to use a rulemaking process after the Supreme Court rejected an earlier plan. The Supreme Court had previously blocked another one of Biden’s plans in a case brought by some Republican states, including Missouri. The judge in Georgia said his state didn't prove it would be significantly harmed by Biden’s new plan. However, he found that Missouri has a strong argument because the state is suing on behalf of MOHELA, a student loan servicer that might lose revenue if loans are canceled. The Republican states also argued that the Education Department had been telling loan servicers to prepare for cancellation early, skipping a usual waiting period. Alabama, Arkansas, Florida, North Dakota, and Ohio joined Missouri in this lawsuit.

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