Staff Reports
President Joe Biden’s ambitious push for student loan cancellation just hit a choppy sea of legal waters, but the White House seems poised to row ahead—at least for now. A Georgia judge, tired of melodramatic legal theatrics from the Peach State, decided to kick the case up to Missouri. This ruling means that Biden’s debt forgiveness plan, which had been languishing in a legal limbo since September thanks to a Republican-led challenge, is temporarily free to float downstream toward final approval.
The Georgia-based lawsuit was initiated by seven Republican states who apparently believe that canceling student debt amounts to making it rain tax dollars on a small group of borrowers while leaving everyone else to grapple with the fallout. However, Judge J. Randal Hall delivered the not-so-shocking news that Georgia lacked the standing to sue. He promptly sent the case packing to Missouri, where the drama continues. The good citizens of Missouri, known for their love of fair play and endless court battles, are already gearing up to fight against Biden’s plan as they seek a ruling to block it.
Biden's student loan cancellation free to move forward as court order expires https://t.co/JXg6bGA4BG
— KTVB.COM (@KTVB) October 3, 2024
With the Georgia challenge out of the picture, the Biden administration is now looking to whip together a final rule that could pave the way for erasing a staggering amount of student loan debt for approximately 30 million borrowers—if it doesn’t get halted in Missouri, of course. The plan could wipe out up to $20,000 for individuals whose student loan balances resemble an apocalyptic mountain range thanks to interest, providing a particular boon for those who have been diligently repaying their loans for twenty long years while wondering if college was really worth it.
Biden’s current strategy involves using a fresh federal rule-making process after his previous attempts were ousted by the Supreme Court. The American people watched in bemusement as the court tossed aside Biden’s earlier plan, fearing it would unleash a tidal wave of debt forgiveness for nearly 43 million people. The Missouri courts are now stuck in the eye of the storm, as they need to respond quickly given the Education Department’s hints of impending mass loan cancellations—something that could allegedly happen as soon as Monday.
Missouri’s lawsuit is being championed by MOHELA, a state-created student loan servicer that now has a vested interest in keeping the status quo. It argues that wiping out student debt would directly impact its revenue, which brings a whole new meaning to the phrase “who pays the piper.” The Republican states, which have apparently found their backbone after Biden’s legal rollercoaster, contend that the Education Department was operating behind the scenes, giving servicers a heads-up about loan cancellations weeks before any official announcements. This is a classic maneuver that raises eyebrows and leaves taxpayers wondering about the true transparency of government dealings.
As Alabama, Arkansas, Florida, North Dakota, and Ohio join Missouri in what is shaping up to be the ultimate court showdown of the century, Americans are left wondering: when will the circus finally pack up and go home? The specter of “unlawful” loan cancelation has the courts in a tizzy, with nary a hint of what the final outcome might be. One thing is for sure—the saga surrounding Biden’s student loan overhaul is far from over, and the political stakes couldn’t be higher.
