Federal Judge Blocks Biden's $147 Billion Student Loan Forgiveness Plan

A Missouri judge has issued an injunction halting the proposed debt relief for millions, citing legal and financial concerns raised by Republican-led states.

U.S. District Judge Matthew Schelp in Missouri granted a preliminary injunction against President Biden's student debt relief plan, blocking it from taking effect.
The plan aimed to cancel up to $20,000 of student loan debt for as many as 30 million borrowers but faced legal challenges from six Republican-led states.
Missouri's student loan servicer, MOHELA, argued that the plan would harm its revenue, which was a key factor in the judge's decision to block the relief.
The Department of Education expressed disappointment and vowed to continue defending the proposal, which has not yet been finalized under the Higher Education Act of 1965.
This legal setback adds to previous challenges faced by the Biden administration's efforts to provide broad student loan forgiveness, which have been blocked by courts and criticized by opponents.