President Joe Biden's student loan forgiveness plan was temporarily put on hold by a federal judge from Missouri on Thursday, October 3, 2024. The move came less than a day after a Georgia judge said he would allow a restraining order against the relief to expire.
St. Louis-based Judge Matthew Schelp, who was appointed by former President Donald Trump, granted an injunction to seven GOP-led states (including Missouri).
As news of the injunction spread, internet users were quick to react. One user on X slammed Judge Schelp's move, stating:
Netizens criticized Schelp, alleging he was bribed. Others incorrectly wondered how a state judge could block a decision made by a federal judge.
"You know who’s based in Missouri? The primary student loan servicer Mohela. Hmm. Funny how a Missouri judge got right on this. Maybe we should check that judge’s bank account. Just for fun." one suggested.
"How can a state judge block something that was already ruled on by a higher judge?" another questioned.
"This just perpetuates the idea that the government would rather keep the people subservient and in their debt, instead of creating opportunities to let people grow. Keep the people in debt and uneducated, thats all they want and care about," @tweetsfrombel wrote.
Many continued to react negatively to the move.
"For the love of GOD CAN I HAVE ANYTHING NICE FOR ONCE," an exasperated netizen remarked.
"you'd think by now states would figure out that if more graduates weren't bogged down by loans, they'd be able to spend more money and boost the state economy...but what do i know?" @violetaffairs added.
"Stop being so miserable Missouri," a user commented.
Biden's student debt relief plan was paused in September after seven GOP-led states filed a restraining order in Georgia
According to a report by ABC News, Biden's student loan relief plan was put on hold last month after seven states filed a restraining order in Georgia, claiming POTUS had "overstepped" his legal authority. The states, which include Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio, argued that canceling the debt was illegal.
However, on Thursday, Judge J. Randal Hall ruled not to extend the pause, letting the order expire. He stated that Georgia doesn't have the legal right to sue in this case, adding that Missouri has a "clear standing" to challenge Biden's plan. Hall stated that Biden's plan would harm Missouri-based student loan servicer MOHELA (a.k.a. Missouri Higher Education Loan Authority).
As reported by ABC News, when appealing to Judge Matthew Schelp, the states, suing on behalf of MOHELA, urged for fast action, arguing that the U.S. Department of Education could "unlawfully mass cancel up to hundreds of billions of dollars in student loans as soon as Monday."
Judge Matthew Schelp stated that it was an "easy" decision considering that the Biden administration would quickly move ahead with its plans to forgive the debt as soon as the restraining order would lapse. The injunction bars the U.S. Department of Education from forgiving the loan debt until he rules on the case. As reported by CNBC, Schelp's order stated:
"Allowing Defendants to eliminate the student loan debt at issue here would prevent this Court, the U.S. Court of Appeals, and the Supreme Court from reviewing this matter on the backend, allowing Defendants’ actions to evade review."
If passed, Biden's plan would have canceled (at least partly) student loan debt for an estimated 30 million borrowers.