Student loan forgiveness plan can move forward, federal judge says

A federal judge will let a temporary restraining order expire against the Biden administration's sweeping new plan for student loan forgiveness that could provide relief for tens of millions of Americans.

An estimate from the Center for American Progress suggests the plan, combined with the administration's previous efforts, could benefit as many as three out of four federal student loan holders.

U.S. District Judge Randal Hall in Georgia, appointed by former Republican President George W. Bush, declared victory for the Biden administration late Wednesday.

The ruling means President Joe Biden can move forward with his administration's student loan forgiveness plan just weeks before the November election.

The development follows a lawsuit against the aid package filed by seven Republican-led states. The states — Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota and Ohio — said the U.S. Department of Education's new debt relief effort was illegal.

However, Hall found that Georgia did not have standing to sue against the relief plan and could not serve as venue for the case.

The judge ordered the case moved to Missouri because the states claim Biden's plan would most harm student loan servicer Mohela, or the Missouri Higher Education Loan Authority.

A spokesman for the U.S. Department of Education said it welcomed the judge's decision that Georgia had “no legal basis” to bring the case, but criticized the Republican movement to stop the relief.

“The fact remains that this lawsuit reflects the ongoing efforts of Republican elected officials to prevent millions of their own constituents from getting relief from their student loans,” they said.

“We will not stop fighting to fix the broken student loan system and provide support and relief to borrowers across the country.”

Biden's plan would forgive student debt for four groups of borrowers: those who owe more than they originally took on; people who have been in repayment for decades; students from schools with low financial value; and those who qualify for loan forgiveness under an existing program but have not yet applied for it.

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