In a major victory for the Biden administration, a federal judge has allowed President Joe Biden’s student loan forgiveness plan to move forward. The temporary restraining order blocking the plan expired on October 3, marking a huge moment in the administration’s effort to provide relief to millions of borrowers.
The lawsuit, brought by seven GOP-led states—Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio—claimed that the U.S. Department of Education’s debt cancellation plan was illegal. These states argued that the plan’s implementation was premature, as the rules had not yet been finalized. However, U.S. District Judge Randall Hall, who presided over the case in Georgia, disagreed. In his ruling, Hall stated that Georgia lacked the necessary standing to sue. “The state failed to show an injury that is concrete, particularized, actual, or imminent,” Hall wrote.
Victory for Student Loan Borrowers
The decision clears the way for the Biden administration to provide student debt relief to eligible borrowers. According to a spokesperson from the Department of Education, this ruling is a crucial step in addressing the student loan crisis. “This lawsuit reflects an ongoing effort by Republican elected officials to prevent millions of their own constituents from getting breathing room on their student loans,” the spokesperson said.
Advocates for student loan forgiveness were quick to celebrate. “Today’s legal decision is a small victory for democracy,” the Student Borrower Protection Center said. “This plan is both legal and necessary to bring vital relief to over 30 million Americans.”
Who Benefits?
The plan, as it stands, would offer relief to a broad swath of borrowers, especially those facing financial hardship. Individuals whose loan balances exceed what they initially borrowed, people who have been paying off loans for 20 to 25 years, and borrowers from low-earning career-training programs are among those set to benefit. Additionally, those who are eligible for existing forgiveness programs but have not yet applied will now have a chance at relief.