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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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.
