A federal judge will let a temporary restraining order expire against the Biden administration’s sweeping new student loan forgiveness plan, which could provide relief to tens of millions of Americans.
U.S. District Judge Randal Hall in Georgia, appointed by former Republican President George W. Bush, handed victory to the Biden administration late Wednesday.
The ruling means Biden can move forward with his administration’s student loan forgiveness plan, just weeks before the November election.
The development arises from a lawsuit against the relief package filed by seven GOP-led states.
The states (Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota and Ohio) said the U.S. Department of Education’s new debt cancellation effort is illegal.
However, Hall found that Georgia lacked standing to sue against the relief plan and could not be the venue for the case.
The judge ordered the case transferred to Missouri as the states claim Biden’s plan would further harm the student loan servicer Mohela, or the Missouri Higher Education Loan Authority.
It is article was originally published in English by Annie Nova for our sister chain CNBC.com. For more from CNBC enter here.
