Staff Reports
A federal judge in Missouri has slammed the door shut on President Biden’s wishful thinking regarding his latest student loan cancellation scheme. In a decisive move, U.S. District Judge Matthew Schelp issued an injunction that halts any plans for widespread debt cancellation, leaving many of the plan’s advocates in the lurch and questioning their optimism.
Just hours before this judicial intervention, six states, led by the fierce Missouri Attorney General, called for action after a Georgia judge decided not to extend a previous hold. The states had a good reason for their urgency, as they feared the Biden administration was ramping up to authorize a financial firework display—potentially canceling hundreds of billions in student loans as soon as Monday. To the delight of conservative critics, Schelp wasted no time and deemed the decision to intervene “easy.”
Biden's student loan cancellation is put on hold again after day of legal whiplash https://t.co/gUvdo3mwNR
— KING 5 News (@KING5Seattle) October 3, 2024
Biden’s student loan debacle has been teetering on the edge of judicial uncertainty since September when the states filed to challenge the president’s actions. The earlier lifeline offered by a Georgia judge was unfortunately pulled, as he ruled that Georgia lacked the standing to block the plan. However, Missouri was declared to have “clear standing,” shining the spotlight on Biden’s overreach and making it clear that legal boundaries were not to be toyed with.
Proponents of Biden’s student loan cancellation scheme had briefly held onto a flicker of hope as speculation swirled that the Education Department could reinitialize the plan following the expiration of Hall’s order. However, Missouri’s Schelp snuffed out that mini-celebration, bringing back the cold reality that the plan was still DOA.
Missouri’s Attorney General celebrated this judicial decision, suggesting that it was a resounding win for average Americans who simply do not want to shoulder the financial burden of high-priced college debt piling up from elitist institutions. Besides, there’s a certain thrill in hearing that a government entity—crafted specifically to assist in loan servicing—might actually be savaged by the very rules they were supposed to follow.
The Biden administration’s plan aimed to wipe away at least some student loan debts for around 30 million borrowers, promising rather attractive incentives. Up to $20,000 in forgiveness was on the line for those whose loan balances have soared with crippling interest rates. It could also serve those who have labored over their loans for decades. Yet, it appears that dreams of a debt-free life are now on hold as red states rally in defense of the integrity of the loan system, much to the chagrin of liberal dreamers.
With the Missouri lawsuit leading the charge, backed by states like Alabama, Arkansas, Florida, North Dakota, and Ohio, it’s clear that there is a solid alliance ready to stand firm against this reckless maneuver. The Biden administration might need to reconsider its strategy, as it faces a coordinated legal backlash from states tired of its overreaching policies.
