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Biden administration can move forward with student loan forgiveness, federal judge rules

  • A federal judge will let expire a temporary restraining order against the Biden administration's sweeping new student loan forgiveness plan, which could deliver relief to tens of millions of Americans.
  • The ruling means President Joe Biden may move forward with his administration's student loan forgiveness plan, just weeks before the November election.

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

The plan could benefit as many as three in every four federal student loan holders, when combined with the administration's previous efforts, according to an estimate by the Center for American Progress.

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

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

The development stems from a lawsuit against the aid package brought by seven GOP-led states. The states — Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota and Ohio — said the U.S. Department of Education's new debt cancellation effort is illegal.

However, Hall found that Georgia lacked standing to sue against the relief plan, and could not be the venue for the case.

The judge directed the case to be transferred to Missouri, since the states claim Biden's plan would most harm student loan servicer Mohela, or the Missouri Higher Education Loan Authority.

A spokesperson for the U.S. Department of Education said it appreciated the judge's ruling that

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