Judge Halts Biden's Student Debt Forgiveness Plan Amid Republican Legal Challenge
A U.S. judge has temporarily blocked President Joe Biden's latest student debt forgiveness initiative. Seven Republican-led states filed a lawsuit claiming the Education Department lacked the authority to implement the plan. The policy could affect 27.6 million borrowers and its legality remains in question pending further hearings.
A U.S. judge has temporarily halted President Joe Biden's student debt forgiveness plan, following a lawsuit from seven Republican-led states. The states argue that the Education Department lacks the authority to implement the plan, which could impact 27.6 million borrowers and lead to the cancellation of $73 billion in debt.
Judge J. Randal Hall, appointed by former President George W. Bush, issued a temporary restraining order citing recent rulings against similar federal student loan forgiveness plans. The order comes amid ongoing efforts by Republican states to block Biden's debt-relief measures, including a separate program already stalled by the Supreme Court.
The Education Department has yet to finalize the contested rule, which reportedly costs an estimated $146.9 billion. The next hearing is scheduled for Sept. 18, while the department has not commented on the latest legal challenge.
(With inputs from agencies.)