Judge Temporarily Blocks Biden's Student Debt Forgiveness Plan

A U.S. judge has temporarily halted President Joe Biden's latest student debt forgiveness plan after seven Republican-led states filed a lawsuit. The judge argued that the Education Department likely lacked the authority to cancel these loans. The ruling affects millions of federal student loan borrowers.

A U.S. judge temporarily blocked President Joe Biden's administration from rolling out its latest student debt forgiveness plan on Thursday. This move comes just days after seven Republican-led states filed a lawsuit against it.

U.S. District Judge J. Randal Hall from Augusta, Georgia, stated that the states had shown a likelihood of proving the Education Department lacked the authority to cancel student loans under this new plan. The judge highlighted documents suggesting that loan servicers were instructed to begin canceling massive amounts of debt this week.

The ruling could immediately affect at least $73 billion in loans, with billions more potential debt relief. Hall, a Republican appointee, issued the temporary restraining order to maintain the status quo until a formal hearing on September 18. The Education Department has yet to comment on the decision.

(With inputs from agencies.)