Missouri judge halts Biden's student loan forgiveness plan

• The Biden administration's student loan forgiveness plan was temporarily blocked once again, just a day after a federal judge decided to let the restraining order against the relief expire.
• A new preliminary injunction against Biden's relief plan was issued by U.S. District Judge Matthew Schelp, who is based in St. Louis.
• The U.S. Department of Education is currently unable to forgive student loans until a decision is made by Schelp, an appointee of former President Donald Trump.

A Missouri judge temporarily blocked the Biden administration's student loan forgiveness plan on Thursday, one day after a federal judge in Georgia allowed a restraining order against the relief to expire.

U.S. District Judge Matthew Schelp, appointed by Republican former President Donald Trump, issued a preliminary injunction against Biden's relief plan.

The U.S. Department of Education is temporarily prohibited from granting loan forgiveness until a ruling from Judge Schelp is made on the case.

During the past 24 hours, federal student loan holders experienced legal turmoil as a lawsuit challenging Biden's aid package, initiated by seven Republican-led states, shifted between Georgia and Missouri courts.

The states of Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio have filed a lawsuit against the U.S. Department of Education, claiming that the department's new debt cancellation initiative is unlawful.

On Wednesday, U.S. District Judge Randal Hall in Georgia ruled that his state lacked standing to sue against the relief plan, and therefore his court could not hear the case.

Missouri was chosen as the destination for the case, as per Hall's direction, due to the states' belief that Biden's plan would negatively impact student loan servicer Mohela, or the Missouri Higher Education Loan Authority.

The Biden administration's loan forgiveness plan for tens of millions of Americans could be implemented quickly by the Education Department, which has already prepared its loan servicers to reduce and eliminate debts.

Schelp delayed the administration of the vaccine because he was considering the case and believed it was a possibility.

"If Defendants are allowed to eliminate the student loan debt at issue, it would prevent this Court, the U.S. Court of Appeals, and the Supreme Court from reviewing the matter, thus allowing Defendants' actions to evade review," Schelp stated.

This is a developing story, please check back for updates.