Federal judges in Kansas and Missouri have blocked a significant portion of the Biden administration’s student loan repayment plan, which was set to go into effect on July 1. These rulings prevent the U.S. Department of Education from implementing key aspects of the plan that would have provided relief to millions of borrowers. The decisions do not impact assistance already provided to borrowers.
In Kansas, U.S. District Judge Daniel Crabtree ruled in favor of a lawsuit filed by Kansas Attorney General Kris Kobach, allowing forgiveness for students who borrowed $12,000 or less with 10 years of payments. However, he blocked parts of the program designed to help those with larger loans. In Missouri, U.S. District Judge John Ross issued an order preventing the forgiveness of loan balances but allowing for lower monthly payments.
Both judges, appointed by former President Barack Obama, stated that Education Secretary Miguel Cardona exceeded the authority granted by Congress in dealing with student loans. Republicans, including Kobach and Missouri Attorney General Andrew Bailey, hailed the decisions as legal victories against the Biden administration’s plan to shift loan repayment costs to taxpayers.
The White House did not immediately comment on the rulings, while advocacy groups for eliminating student debt criticized the decisions as partisan and causing chaos for borrowers. The lawsuits in both states sought to invalidate the entire program, which has already helped more than 150,000 borrowers. The injunctions imposed by the judges will remain in effect through further legal proceedings.
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