He granted an injunction after a multi-state lawsuit.
U.S. District Judge Matthew Schelp temporarily halted President Biden’s latest student loan cancellation plan following a request by six other states, including Missouri. The states claimed that the plan, which could cancel up to hundreds of billions of dollars in student debt, was an overreach of the legal authority of President Biden’s administration. This decision came after a judge in Georgia refused to extend a previous block of the plan, which gave the Education Department a brief opportunity to move forward. However, Judge Schelp’s injunction has again paused any action on loan cancellation.
The lawsuit, initially filed in Georgia, was transferred to Missouri as U.S. District Judge J. Randal Hall ruled that Missouri had “clearer standing” to challenge the loan forgiveness plan. Missouri’s involvement centered on the state’s student loan servicer, MOHELA, which the state argued would lose revenue if the plan proceeded. The administration’s proposal intends to cancel up to $20,000 of student debt for 30 million borrowers and would provide significant relief for long-term borrowers and those with rising interest balances. Despite the pause, the legal battle continues as various states challenge the scope of executive power in providing debt relief.
As the Lord Leads, Pray with Us…
- For wisdom for federal judges as they assess standing to bring cases and make decisions on stays and injunctions.
- For the justices of the Supreme Court to receive God’s guidance as they begin hearing the fall term cases this week.
Sources: AP News, Newsweek
