Biden's latest student loan cancellation plan faces yet another setback

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.

“This is a huge win for transparency, the rule of law, and for every American who won’t have to foot the bill for someone else’s Ivy League debt,” said Missouri Attorney General Andrew Bailey.

The SAVE plan, which would provide partial or full forgiveness to more than 27 million borrowers, was proposed in April after two previous student debt forgiveness plan had been blocked by courts.

Related: Biden’s SAVE student loan repayment plan blocked by federal appeals court

This latest ruling marks another setback for Pres. Biden’s student cancellation efforts. After a federal appeals court blocked the SAVE forgiveness plan in early August, President Biden appealed to the Supreme Court to reinstate the program. However, the high court declined to revive the SAVE plan, then a few weeks ago, a federal judge extended a temporary restraining order on the plan.