Current:Home > MyBiden’s student loan cancellation free to move forward as court order expires-DB Wealth Institute B2 Reviews & Ratings
Biden’s student loan cancellation free to move forward as court order expires
lotradecoin services View Date:2024-12-25 22:03:19
WASHINGTON (AP) — President Joe Biden’s latest attempt at student loan cancellation is free to move ahead — at least temporarily — after a judge in Georgia decided that a legal challenge should be handled by a court in Missouri.
Biden’s plan has been on hold since September after seven Republican-led states challenged it in federal court in Georgia. But on Wednesday, a federal judge decided not to extend the pause and instead dismissed Georgia from the lawsuit, finding that it lacked the legal right, or standing, to sue.
U.S. District Court Judge J. Randal Hall opted to send the suit to Missouri, one of the remaining states in the case. On Thursday, those states filed a request asking the Missouri court to block the plan.
Without a new obstacle, the Biden administration could push the proposal toward the finish line as soon as Friday. The Education Department would be free to finalize a rule paving the way for cancellation, though it would likely take days or weeks to carry out.
Biden’s plan would cancel at least some student loan debt for an estimated 30 million borrowers.
It would erase up to $20,000 in interest for those who have seen their original balances increase because of runaway interest. It would also provide relief to those who have been repaying their loans for 20 or 25 years, and those who went to college programs that leave graduates with high debt compared to their incomes.
Biden told the Education Department to pursue cancellation through a federal rulemaking process after the Supreme Court rejected an earlier plan using a different legal justification. That plan would have eliminated up to $20,000 for 43 million Americans.
The Supreme Court rejected Biden’s first proposal in a case brought by Republican states including Missouri, which now takes the lead in the latest lawsuit.
In his order Wednesday, Hall said Georgia failed to prove it was significantly harmed by Biden’s new plan. He rejected an argument that the policy would hurt the state’s income tax revenue, but he found that Missouri has “clear standing” to sue.
Missouri is suing on behalf of MOHELA, a student loan servicer that was created by the state and is hired by the federal government to help collect student loans. In the suit, Missouri argues that cancellation would hurt MOHELA’s revenue because it’s paid based on the number of borrowers it serves.
In their lawsuit, the Republican states argue that the Education Department had quietly been telling loan servicers to prepare for loan cancellation as early as Sept. 9, bypassing a typical 60-day waiting period for new federal rules to take effect.
The courts are now asking the Missouri court to act quickly saying the Education Department could “unlawfully mass cancel up to hundreds of billions of dollars in student loans as soon as Monday.”
Also joining the suit are Alabama, Arkansas, Florida, North Dakota and Ohio.
___
The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.
veryGood! (8)
Related
- Get 10 free boneless wings with your order at Buffalo Wild Wings: How to get the deal
- Illinois juvenile justice chief to take over troubled child-services agency
- Prosecutors ask judge to toss sexual battery charges against Jackson Mahomes
- 2024 brings a rare solar eclipse that won't happen again for decades: Here's what to know
- 2025 COLA estimate dips with inflation, but high daily expenses still burn seniors
- Judge recommends ending suit on prosecuting ex-felons who vote in North Carolina, cites new law
- Federal Reserve minutes: Officials saw inflation cooling but were cautious about timing of rate cuts
- Founder of retirement thoroughbred farm in Kentucky announces he’s handing over reins to successor
- Horoscopes Today, August 14, 2024
- Kenny Pickett blasts reports that he 'refused' to dress as Mason Rudolph's backup
Ranking
- Conservative are pushing a ‘parental rights’ agenda in Florida school board races. But will it work?
- Michigan state lawmaker enters crowded U.S. House race as Democrats aim to defend open seat
- Carolina Panthers owner David Tepper fined by NFL for throwing drink into stands
- Injured Washington RB Dillon Johnson expected to play in title game against Michigan
- Lady Gaga’s Brunette Hair Transformation Will Have You Applauding
- Democratic Gov. Andy Beshear calls for unity in GOP-leaning Kentucky to uplift economy, education
- Myanmar’s military government pardons 10,000 prisoners to mark Independence Day
- Selena Gomez's Boyfriend Benny Blanco Shares Glimpse Into Their Romance
Recommendation
-
As Baltimore’s Sewer System Buckles Under Extreme Weather, City Refuses to Help Residents With Cleanup Efforts
-
Flood recovery, public safety, opioid crisis and housing are Vermont Legislature’s top priorities
-
David Ortiz's gender-reveal whiff shows Hall of Famer still can't hit inside pitches
-
Doctors and nurses at one of the nation's top trauma centers reflect on increase in gun violence
-
Pro-Palestinian protesters who blocked road near Sea-Tac Airport to have charges dropped
-
After Utah exchange student cyber kidnapping, we're looking at how the scam works
-
A Texas father and son arrested in the killings of a pregnant woman and her boyfriend
-
After Utah exchange student cyber kidnapping, we're looking at how the scam works