Judge Extends Restraining Order on Biden Admin Student Loan Forgiveness

A federal judge has extended the block on the Biden administration’s student loan relief plan, and the clock is ticking as the next presidential election approaches.

At a Glance

A federal judge extended the restraining order on Biden’s student loan forgiveness plan.
The extension threatens financial relief plans before the 2024 presidential elections.
A lawsuit led by seven GOP-led states claims debt cancellation is illegal.
Biden’s plan faces ongoing legal challenges and significant hurdles.

Block on Student Loan Relief Plan Extended

A federal judge has extended a temporary restraining order against the Biden administration’s student loan forgiveness plan. U.S. District Judge Randal Hall, appointed by President George W. Bush, extended the order for an additional 14 days. This decision further complicates the White House’s goal to deliver financial relief before the 2024 presidential elections on November 5th. The restraining order, first issued on September 5, signals a significant setback for Biden’s efforts to cancel federal student loans.

The legal complexities surrounding the student loan forgiveness plan have continually tripped up the Biden administration. The lawsuit was filed by seven GOP-led states—Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio—which argue that the debt cancellation effort is both illegal and an underhanded operation by the administration. Hall’s decision echoes earlier suspicions that the Education Department’s approach to debt forgiveness lacks the necessary legal support.

President Joe Biden's student debt forgiveness plan is facing another setback as a federal judge extended the temporary restraining order against it. https://t.co/GuYPDQVV7J

— NBC Politics (@NBCPolitics) September 19, 2024

Legal Challenges Mount

Biden’s student loan forgiveness plan is not only facing challenges from GOP-led states but also considerably large hurdles within the judicial system. The Supreme Court previously struck down Biden’s first wide-scale student loan forgiveness attempt in June 2023 with a 6-3 vote on ideological lines. An official from the Biden administration stated that debt forgiveness wouldn’t commence until legally permitted, highlighting that the administration would persist despite the robust legal objections.

The current restraining order significantly impacts Biden’s strategy, as he had previously alerted millions of borrowers about the impending debt forgiveness. Despite his efforts, the move appears caught in a legal quagmire that keeps it from moving forward effectively.

What’s Next for Borrowers?

Plans are in place for the Education Department to issue further repayment guidelines. Meanwhile, Biden’s repayment plan, SAVE, is also under judicial scrutiny. Intended to offer loan forgiveness to those who borrowed less than $12,000 after 20 to 25 years (and eventually 10 years for some borrowers), the SAVE plan is vulnerable to the same legal constraints.

The Biden administration continues to push efforts to provide relief to millions of borrowers. The Department of Education continues to develop regulations aimed at specifying the Secretary of Education’s discretion to waive federal student loan debt.