Judge Extends Block on Biden’s $147 Billion Student Loan Relief Plan

I don't know who this is. Man speaks at podium.

A federal judge extends a block on the Biden administration’s $147 billion student loan relief plan, a significant setback just before the elections.

At a Glance

  • Federal Judge Randal Hall extends restraining order for 14 days.
  • Plan aimed to forgive up to $20,000 per borrower.
  • Seven GOP-led states filed a lawsuit claiming the effort is illegal.
  • The decision disrupts the White House’s goal of providing relief before the November elections.

Federal Judge Extends Block on Biden’s Student Loan Relief Plan

U.S. District Judge Randal Hall has extended a temporary restraining order against President Biden’s ambitious student loan forgiveness plan for another 14 days. The decision hinges on ensuring ample time to review arguments from both the plaintiffs and defendants.

The restraining order halts the administration’s efforts to forgive up to $20,000 per borrower and potentially benefit three out of four federal student loan holders. Initiated by seven Republican-led states—Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio—the lawsuit argues that the debt cancellation is illegal and accuses the administration of trying to enforce the plan covertly.

Legal Hurdles and Political Setbacks

This extension marks another chapter in the ongoing legal battles that have consistently thwarted Biden’s debt relief efforts. Republican judges and officials have been a formidable barrier, striking down the President’s initiatives. Just last June, the Supreme Court blocked Biden’s first major attempt at loan forgiveness with a 6-3 ruling.

Quote: “It’s just talk,” Trump said. “You know what it reminds me of? When they said they’re going to get student loans terminated and it ended up being a total catastrophe.”

Judge Hall, who initially issued the restraining order on September 5, is reviewing whether to grant a preliminary injunction to the plaintiffs or dismiss the case as requested by the Biden administration. His decision to extend the order is a significant blow to Biden’s campaign stunt aimed to show immediate, noticeable relief to student debtors before the November 5th presidential elections.

Long-term Relief Efforts Under Scrutiny

Biden’s debt relief plan is multifaceted, targeting several borrower groups and aiming to discharge up to $20,000 in interest for millions, addressing long-term balance holders. Despite ongoing obstacles, the Biden administration has managed to deliver over $168 billion in relief to over 4.7 million borrowers.

“The extension will allow the Court to appropriately review and assess the Parties’ submitted briefs and argument offered during the September 18, 2024 hearing and to issue an Order addressing the pending motions” – US District Judge Randal Hall

The SAVE plan, another prominent initiative from the Biden administration, currently enlisted 8 million people who are relieved from making payments. The SAVE plan aims to make education more affordable but faces similar legal challenges. Judges in Kansas and Missouri issued nationwide preliminary injunctions against its $475 billion estimated plan.

Biden’s efforts to make higher education more accessible and less burdensome through these debtor-friendly plans come under heavy fire from political and judicial fronts alike. As November approaches, these legal confrontations will continue to impact millions of American families facing student loan debt.

Sources:

  1. Federal judge extends block on Biden’s student debt forgiveness plan
  2. Federal judge delivers another blow to Biden’s student loan handout plan: ‘Good cause exists’
  3. Federal judge delivers another blow to Biden’s student loan handout plan: ‘Good cause exists’
  4. Judge keeps Biden’s latest student loan forgiveness plan blocked
  5. Federal judge temporarily blocks Biden’s student loan forgiveness plan
  6. Judge extends temporary restraining order against Biden’s student debt forgiveness plan

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