Overview

• 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.