A federal court in Georgia has issued a temporary restraining order against President Biden's student-debt relief plan, citing a lawsuit filed by GOP states. This ruling comes just as the administration was preparing to launch the initiative, with plans reportedly in place to start in September 2024. The order restricts the White House from mass canceling student loans and forgiving any interest until the case is resolved.
The GOP states argue that the Biden administration's actions violate regulatory procedures, asserting that implementing the relief ahead of schedule harms entities like MOHELA, a state instrumentality. They reference internal documents which express a timeline indicating the Biden-Harris Administration's plans to initiate the Federal Student Loan Debt Initiative in September of next year.
The ruling specified that the Biden administration is 'temporarily restrained' from executing the Third Mass Cancellation Rule, further insisting that any actions that forgive loans, not charge interest, or direct contractors to proceed with such actions are prohibited. This legal setback reflects ongoing judicial challenges for student-loan borrowers.
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