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A judge has allowed President Biden’s student loan forgiveness plan to proceed after allowing a temporary restraining order to expire

Let’s bring you up to speed: Earlier this year, Republican-led states, including Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio, filed a lawsuit against the Biden administration’s student loan forgiveness plan, arguing that the initiative is illegal and oversteps the President’s authority. They also claim that the plan violates federal law by bypassing Congress and would result in financial harm.  

What’s going on now: District Judge Randal Hall allowed the temporary restraining order on President Biden’s student loan forgiveness plan to expire, enabling the plan to move forward, but without resolving the overall legality of the case. The judge also dismissed Georgia from the lawsuit, ruling that the state lacked standing as its claimed potential loss of tax revenue was deemed incidental. However, the judge upheld Missouri’s involvement in the case, determining that the state had standing to sue because its nonprofit student loan servicer, MOHELA, could face significant financial losses if the forgiveness plan is implemented.

US Department of Education responds: In a brief statement, a spokeswoman for the Department of Education said, “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. We will not stop fighting to fix the broken student loan system and provide support and relief to borrowers across the country.”