Biden student loan cancellation plan on hold again

The Biden administration’s student loan cancellation plan has been put on hold once again in Missouri after brief celebration from advocates this week when another judge ruled the plan could move forward.  

A federal judge in Missouri issued an injunction that blocks widespread debt relief on Thursday, hours after Biden got a favorable ruling in Georgia.  

The Georgia court had dismissed its own state from the legal challenge, saying Georgia officials could not demonstrate injury from Biden’s plan, and moved the case to Missouri, a state it said did have standing.  

Georgia U.S. District Judge J. Randal Hall said that while the case is moved and his temporary injunction against the plan expired, the Biden administration would be able to move forward with relief. 

But the other Republican-led states challenging the plan — Missouri, Alabama, Arkansas, Florida, North Dakota and Ohio — quickly asked the new judge in Missouri for the plan to be blocked.  

Missouri U.S. District Judge Matthew Schelp granted that request Thursday evening.  

“This is a huge win for transparency, the rule of law, and for every American who won’t have to foot the bill for someone else’s Ivy League debt,” said Missouri Attorney General Andrew Bailey (R). 

The debt relief plan proposed by the administration would provide partial or full forgiveness to more than 27 million borrowers.  

The GOP states challenged the plan earlier this year, saying the administration does not have the authority to provide such relief. 

"The Department of Education is extremely disappointed by this ruling on our proposed debt relief rules, which have not yet even been finalized," a spokesperson said in a statement. "This lawsuit was brought by Republican elected officials who made clear they will stop at nothing to prevent millions of their own constituents from getting breathing room on their student loans. We will continue to vigorously defend these proposals in court."

—Updated at 10:21 a.m.