Federal judge blocks implementation of new Biden-Harris student loan forgiveness plan

A federal judge in Georgia on Thursday temporarily blocked the Biden administration’s proposal to cancel federal student loans for nearly 30 million borrowers after a group of seven states filed a lawsuit.

According to the ruling by U.S. District Judge J. Randal Hall, the seven states that sued the Biden administration have established a valid case that is likely to prove that the Department of Education lacks the constitutional authority to implement the student loan forgiveness proposal.

“Plaintiffs demonstrate a strong likelihood of success on the merits given the rule’s lack of statutory authority,” the judge wrote in the decision.

Missouri was one of seven GOP-led states that sued the administration over the new plan, estimating that about $73 billion in loans could have been forgiven under the original proposal, with more to come.

“The Biden-Harris administration is committed to burdening working Americans with Ivy League debt, even if it means breaking the law. Our latest lawsuit challenges their third and weakest attempt to mass-forgive student loans in the dark of night without notifying Congress — or the public — about it. It’s illegal,” Missouri Attorney General Andrew Bailey said in a statement.

“We have successfully stopped their first two illegal student loan forgiveness plans; I am confident that we will achieve another victory to block the third,” he added.