The Biden administration achieved a small legal victory in an ongoing battle over a new student loan forgiveness program, as a Georgia judge transferred the case to a different court, potentially allowing the program to move forward. President Biden first introduced the new program, known as “Plan B,” following the Supreme Court’s ruling against his initial mass debt relief plan. The “Plan B” initiative targets specific groups of borrowers, such as those who entered repayment 20 or 25 years ago or those who owe more on their loans due to interest accrual.
Republican-led states, including Missouri, filed a lawsuit in September to halt the implementation of the new student loan forgiveness program, arguing that it would harm state finances. A Georgia judge initially issued a Temporary Restraining Order, blocking the program for a brief period, but eventually transferred the case to a federal court in Missouri. The court in Georgia dismissed the state’s involvement in the suit, citing a lack of evidence of harm to Georgia from the loan forgiveness program.
The ruling in Georgia was seen as a temporary victory for the Biden administration, opening the possibility for the new forgiveness program to proceed. However, with the case now with a federal court in Missouri, the legal battle is far from over. Advocates for borrowers praised the ruling, emphasizing the importance of providing relief to millions of Americans struggling with student loan debt. The Missouri court will now consider the challengers’ arguments, with Missouri having a history of challenging Biden administration programs through its partnership with MOHELA.
While the legal battle continues, borrowers are anxiously awaiting the implementation of the new student loan forgiveness plan. The Biden administration has faced challenges in enacting relief programs, with another initiative—the SAVE plan—also facing legal hurdles. Advocates have called on the administration to promptly implement the new forgiveness program, especially given the increasing financial burden on borrowers. Despite a recent preliminary injunction granted by the Missouri court, blocking the “Plan B” program, the future of student loan forgiveness remains uncertain. With millions of borrowers currently in repayment, the need for relief is more urgent than ever.
