In a significant legal setback for the Biden administration, federal judges in Kansas and Missouri have issued rulings that block key aspects of President Biden’s student loan repayment plan. The rulings, issued by U.S. District Judge Daniel Crabtree in Kansas and U.S. District Judge John Ross in Missouri, come in response to lawsuits filed by multiple states challenging the legality of the program.
Judge Crabtree’s ruling allows for the forgiveness of loans under $12,000 for borrowers who make 10 years of payments instead of the standard 25 years. However, he blocked provisions aimed at reducing monthly payments and shortening the repayment period for borrowers with larger loan amounts.
Meanwhile, Judge Ross’s order in Missouri prevented the Department of Education from forgiving loan balances outright but permitted the reduction of monthly payments.
Both judges cited concerns over whether Education Secretary Miguel Cardona had exceeded the authority granted by Congress regarding student loans. These rulings mark a significant limitation on the Biden administration’s efforts to ease the burden of student loan debt, affecting millions of borrowers who were set to benefit from the program starting July 1.
Republicans, including Missouri Attorney General Andrew Bailey and Kansas Attorney General Kris Kobach, hailed the decisions as victories for fiscal responsibility and the rule of law, arguing that loan forgiveness shifts the financial burden onto taxpayers without proper congressional approval.
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While the White House has not yet responded to the rulings, advocacy groups like the Student Borrower Protection Center criticized the decisions as partisan and detrimental to borrowers seeking relief. These preliminary injunctions will remain in effect until further trials determine the outcomes of the lawsuits, leaving many borrowers uncertain about the future of their loan repayment plans.
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