President Joe Biden's sweeping student loan cancellation plan was put on hold once again in a district court in Missouri on Thursday, a day after a favorable ruling in Georgia district court on Wednesday. For now, the Department of Education is barred from forgiving student loans until a Missouri judge rules on the case.
The latest order stems from a lawsuit challenging Biden's Saving on a Valuable Education (SAVE) plan brought by seven GOP-led states – Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota and Ohio. The lawsuit argued the plan it illegal and exceeds the administration's authority and instead should be addressed through legislation in Congress.
On Wednesday, Georgia was axed from the lawsuit after the judge found it lacked standing to challenge the plan. The lawsuit was then transferred to the district court in Missouri since Georgia lacked the proper venue for the suit. However, a federal judge in Missouri swiftly issued an injunction that blocks widespread debt relief.
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