U.S. District Judge Randal Hall in Augusta, Georgia, has issued a temporary restraining order against President Joe Biden’s second effort to cancel student loan debt for millions of Americans. Earlier this summer, millions of federal student loan borrowers received an email from the Biden administration informing them that debt forgiveness was on the way, and they may be eligible.
Judge Hall, responded to a lawsuit against the relief package brought by seven Republican-led states. The states — Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio — said the U.S. Department of Education’s new debt cancellation effort, like its previous attempts, ‘is illegal.’
Hall said the states had made a convincing case that the department was overstepping its authority and blocked the Biden administration from moving forward with its attempt to cancel federal student loan debt.
In June of 2023, the Supreme Court ruled Biden’s first attempt to cancel around $400 billion in federal student loan debt unconstitutional.
Biden’s first attempt to forgive student loan debt was through an executive action. This latest time, his administration has pursued the regulatory process, a lengthier route that it hoped would make its relief package more immune to legal challenges.
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