Federal judge rules Biden can move forward with student loan forgiveness

Tens of millions of student loan borrowers have received a lifeline that their debts may still be forgiven
By Sam Bourgi
•
08 October 2024
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President Biden’s student loan forgiveness program moves forward after a federal judge in Georgia refused to block the administration’s second attempt at debt relief.

On Oct. 2, U.S. District Judge Randal Hall allowed a temporary restraining order on the plan to expire.

The judge said Georgia wasn’t the right venue for the lawsuit challenging Biden’s student debt relief program, which was supported by Republican state attorneys in Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio.

Instead, Hall transferred the case to the federal eastern district of Missouri.

“There is no indication that the rule is being implemented to attack the states or their income taxes, so any loss of […] tax revenue is incidental and insufficient to create standing for Georgia,” the judge wrote.

When the restraining order was in effect, the Biden administration couldn’t implement its student debt forgiveness program. As Business Insider reported, it’s unclear whether transferring the case to Missouri allows for the relief measures to move forward.

A spokesperson for the Education Department said the decision acknowledges that the lawsuit “has no legal basis to be brought in Georgia.”

However, “the fact remains that this lawsuit reflects an ongoing effort by Republican elected officials who want to prevent millions of their own constituents from getting breathing room on their student loans.”

A small win with important implications

The judge’s ruling came as the Biden administration races against the clock to finalize the rules for student debt relief before the November presidential election.

According to the Education Department, the administration’s plan could bring the total number of student debt relief recipients to 30 million.

This would mark a big win for the Biden-Harris administration during the tight election race between Democratic nominee Kamala Harris and her Republican opponent, Donald Trump.

According to Creditnews data, the Biden administration has already successfully erased more than $160 billion in federal student debt, but that's a drop in the bucket compared to $1.73 trillion in outstanding balances.

It comes as no surprise that student debt relief has become a major election issue.

According to the Education Data Initiative, roughly 43 million Americans are saddled with student loan debt as of 2023, each carrying an average balance of around $38,000.

Student loan forgiveness will be top of mind for young voters this November, said Della Volpe, the founder and CEO of public opinion firm SocialSphere.

Volpe said young voters were instrumental in flipping battleground states during the 2020 presidential election, and they could do so again next month.

Since the government lifted its pandemic-related student payment pause last fall, tens of millions of borrowers have refused to resume payments on their outstanding balances.

Experts say millions of borrowers are staging a “massive student debt strike” in anticipation of more comprehensive relief.

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