Federal judge blocks Biden's student debt forgiveness plan.

• A restraining order against the Biden administration's student debt forgiveness plan was extended by U.S. District Judge Randal Hall, who was appointed by Republican former President George W. Bush.
• It may now be challenging for President Joe Biden to begin forgiving people's debts, as he had hoped to do weeks before the election.

The Biden administration's student loan forgiveness plan has been temporarily halted by a federal judge, jeopardizing the White House's goal of providing financial relief to millions of Americans before the November 5th presidential elections.

On Wednesday, U.S. District Judge Randal Hall, who was appointed by former Republican President George W. Bush, announced that he would uphold the injunction preventing the Biden administration from canceling student debt for another 14 days.

Hall stated that the could would review the plaintiffs' request for a preliminary injunction against the Biden's relief plan and the Biden administration's request to dismiss the case.

The continuation of the restraining order presents the latest obstacle to the Biden administration's efforts to relieve people's federal student loans. Since his campaign, President Biden has pledged to ease the burden of student debt, but legal challenges from Republicans have repeatedly hindered his progress.

The lawsuit against the president's aid package by seven GOP-led states earlier this month has led to the development of a new debt cancellation effort by the U.S. Department of Education. The states, including Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio, argue that the effort is illegal, like previous attempts.

The Biden administration was accused by the states of attempting to secretly implement a plan before the final rule on the program was issued in October, which would have violated the rules regarding the timeline of new regulations.

The Education Department will not begin forgiving up to $147 billion in student debt for as many as 25 million Americans until it is given permission to do so, according to a Biden administration official who spoke to CNBC on Sept. 11.

On Sept. 5, a temporary restraining order was initially issued by Hall against Biden's debt plan, following the states' lawsuit.

Biden's plan would have absolved student debt for four categories of borrowers: those who borrowed more than they initially repaid, individuals who have been repaying for decades, students from low-value schools, and those who meet the criteria for loan forgiveness under an existing program but have not yet applied.

An estimate by the Center for American Progress suggests that as many as 3 in 4 federal student loan holders could benefit from the policy, when combined with the Biden administration's previous debt relief initiatives. Over the summer, the administration sent millions of borrowers an email informing them that debt forgiveness was imminent.

In the presidential debate on Sept. 10, former President Donald Trump compared Democratic nominee Kamala Harris's pledge to safeguard the right to abortion in the U.S. with Democrats' promises to erase student debt.

"Trump stated, "It's just talk. The thought that comes to mind when they mention student loan termination is the disastrous outcome that resulted from their initial promise.""

"He later added that "they didn't even come close to getting student loans." He also mentioned that "they taunted young people and a lot of other people that had loans. They can never get this approved.""

Republican officials and judges have tried to block and rule against relief aid packages, according to Luke Herrine, an assistant professor of law at the University of Alabama.

In June 2023, the Supreme Court voted 6-3 to strike down Biden's first attempt at student loan forgiveness, with the liberal justices supporting the program.