St. Louis, Missouri – A federal judge in Missouri has issued a temporary injunction preventing the Department of Education from implementing further loan forgiveness as part of President Joe Biden’s student debt relief plan. The ruling comes after several states filed lawsuits against a key component of the plan known as the SAVE program, which offers loan forgiveness under an income-driven repayment scheme.

Judge John A. Ross’ order temporarily stops the cancellation of loans under the SAVE plan, citing concerns raised by the suing states regarding the program’s legality. This decision comes after the Supreme Court rejected a broader debt cancellation effort by the Biden administration last year, prompting the creation of the SAVE plan to alleviate the burden of student debt for millions of borrowers.

In response to the lawsuit, the Education Department has been barred from providing further loan forgiveness until the court can fully assess the case on its merits. The judge also dismissed the administration’s attempt to dismiss the case, affirming that the states have legal standing and a strong likelihood of succeeding in their argument against the early loan forgiveness provisions exceeding the Secretary of Education’s statutory authority.

Missouri Attorney General Andrew Bailey praised the ruling, emphasizing the importance of upholding the rule of law and congressional authority over financial matters. Additionally, Arkansas Attorney General Tim Griffin highlighted the need for adherence to constitutional principles, emphasizing that the President cannot unilaterally cancel student loans without congressional approval.

The ongoing legal battle involves seven states, including Florida, Georgia, North Dakota, Ohio, and Oklahoma, aiming to challenge the constitutionality of the loan forgiveness program under the SAVE plan. While certain aspects of the program, such as reducing monthly payments and interest rates, remain unaffected by the injunction, the court’s decision reflects a growing debate over the balance of powers and legal authority in addressing student debt relief initiatives.

Judge Ross emphasized that the program’s benefits to borrowers in terms of financial relief and stability can continue, as long as they do not infringe upon the rights of the suing states. This case sheds light on the complexities surrounding student debt policies and the need for a balanced approach to addressing the financial challenges faced by millions of borrowers nationwide.