- Six states had filed a lawsuit challenging student-debt relief. A federal judge dismissed them.
- It was seen as the biggest challenge to the loan forgiveness plan.
- Although the GOP-led States could appeal, Biden can for now move forward with debt relief.
After a federal judge dismissed their case, Republicans who tried to block President Joe Biden’s student-loan forgiveness have been dealt a serious blow.
Last week, Henry Edward Autrey from Missouri was the US District Judge Oral arguments heardSix Republican-led States filed a lawsuit to stop Biden’s student debt relief. They claimed that the loan forgiveness would reduce their states’ tax revenues. Together with the business operationsMOHELA, a Missouri-based student loan company.
The suit was It is highly recommendedAs one of the most serious cases challenging debt relief plans. Their case was dismissed by the judge on Thursday night.
Autrey stated that the plaintiffs did not show any tangible harm and would no longer be taking the case. They could still take their case to the 8th Circuit Court of Appeals where they will likely be heard by a group of conservative judges.
This was the third major lawsuit to try and block debt relief. Judges have dismissed it. Most recently, the Cato Institute — a Koch-backed libertarian think-tank — Filled a lawsuitTuesday’s vote against Biden’s debt cancellation was because it would hinder recruiting through the Public Service Loan Forgiveness Program (PSLF), joining At least six other major lawsuitsFiled by conservative groups to date.
These legal challenges have not deterred Biden’s administration. Just before Autrey’s Thursday ruling, Supreme Court Justice Amy Coney Barrett DeletedAnother request from a conservative group to suspend the implementation of debt relief is
All of this will happen after Biden on Monday Officially launchedThe application for student-loan forgiveness up to $20,000, which requires that borrowers fill out basic information such as their names and email addresses on an online form.
It is also a good news for borrowers and legislators who were concerned about MOHELA’s role in the case. On Tuesday, Missouri Rep. Cori Bush A letter was writtenTo the CEO of the company to request more information about the legal challenge and the impact it had on the borrowers it served.
“It is unconscionable that your company — as one of the largest student loan companies in the world—would be involved in overtly political efforts to rob millions of their right to student loan debt relief,” Bush wrote.
The Job Creators Network will likely file another conservative lawsuit. Go to courtNext week, however, borrowers can still apply for relief via the online application. studentaid.gov.
“Today, an federal judge confirmed what lawyers in both government and academia have known for years: Joe Biden has the power to cancel student loans broadly and immediately,” Mike Pierce from Student Borrower Protection Center said in a release. “The law is clearly on the side of borrowers as right-wing politicians, corrupt corporations and others fight to stop this historic effort to provide life-changing debt relief for tens of thousands of families.
