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Manila Bulletin devider World devider Judges in Missouri, Kansas temporarily halt part of President Biden's student debt forgiveness plan

Judges in Missouri, Kansas temporarily halt part of President Biden's student debt forgiveness plan

Published Jun 25, 2024 12:53 am

TOPEKA, Kan. (AP) — Federal judges in Kansas and Missouri on Monday blocked parts of a Biden administration student loan repayment plan that provides a faster path to cancellation and lower monthly payments for millions of borrowers.

The judges’ rulings said that the U.S. Department of Education cannot help borrowers ease their loan repayment burdens going forward under a rule set to go into effect July 1. The decisions do not cancel assistance already provided to borrowers.

In Kansas, U.S. District Judge Daniel Crabtree ruled in a lawsuit filed by the state’s attorney general, Kris Kobach, on behalf of his state and 10 others. In his ruling, Crabtree allowed parts of the program that allows students who borrowed $12,000 or less to have the rest of their loans forgiven if they make 10 years’ worth of payments, instead of the standard 25.

Crabtree’s ruling means that the Department of Education won’t be allowed to implement parts of the program meant to help students who had larger loans and could have their monthly payments lowered and their required payment period reduced from 25 years to 20 years.

In Missouri, U.S. District Judge John Ross’ order applies to different parts of the program than Crabtree’s. His order says that the U.S. Department of Education cannot forgive loan balances going forward.

Ross issued a ruling in a lawsuit filed by Missouri Attorney General Andrew Bailey on behalf of his state and six others.

Together, the two rulings appeared to significantly limit the scope of the Biden administration’s efforts to help borrowers after the U.S. Supreme Court last year rejected the Democratic president’s first attempt at a forgiveness plan.

Both orders are preliminary, meaning the injunctions imposed by the judges would remain in effect through a trial of the separate lawsuits. However, to issue a temporary order each judge had to conclude that the states were likely to prevail in a trial.

Both judges were appointed by former President Barack Obama.

Bailey hailed the ruling, calling it "a huge win for the rule of law, and for every American who Joe Biden was about to force to pay off someone else’s debt.”

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