Thankfully, the justice system is stopping Biden from doing the unthinkable.
On Thursday, a federal judge put a temporary hold on the Biden administration’s new student debt forgiveness initiative, just days after a coalition of Republican-led states took legal action to stop it.
U.S. District Judge J. Randal Hall, based in Augusta, Georgia, issued a restraining order in response to a lawsuit filed by attorneys general from seven Republican states. The lawsuit challenges the Education Department’s authority to implement a plan that could potentially forgive student loans for an estimated 27.6 million borrowers.
The Republican state attorneys general have raised concerns that the Education Department has already begun preparations to cancel hundreds of billions of dollars in student loans, even though the proposed rule was not yet finalized. According to their lawsuit, the department’s instructions to federal loan servicers indicated that significant loan cancellations could occur immediately, with potential additional relief to follow. They argue that the Education Department is exceeding its statutory authority by moving forward with such extensive debt forgiveness without clear legislative backing.
Judge Hall, appointed by former Republican President George W. Bush, decided to issue the temporary restraining order to maintain the current legal status until a formal hearing can take place on September 18. In his ruling, Hall noted that the plaintiffs demonstrated a strong likelihood of succeeding in their argument that the rule lacks proper statutory authority. This decision underscores ongoing concerns among conservative leaders about the extent of executive power and the implications of such sweeping financial policies.
This legal development highlights the tension between state and federal authorities over educational debt relief and emphasizes the broader debate on the limits of executive authority in shaping significant economic policies.