ST. LOUIS — A federal judge has dismissed a lawsuit filed by six Republican-led states, including Missouri, to halt the Biden administration's plan to forgive student loan debt.
The ruling, announced Thursday afternoon by U.S. District Judge Henry Autrey, said that the case would be dismissed after reviewing all parts of the lawsuit and arguments presented at the hearing by the respective parties.
Democratic President Joe Biden announced in August that his administration would cancel up to $20,000 in education debt for tens of millions of Americans.
The plan would cancel $10,000 in student loan debt for those making less than $125,000 or households with less than $250,000 in income. Pell Grant recipients, who typically demonstrate more financial need, will get an additional $10,000 in debt forgiven.
The proposal prompted a lawsuit filed in September by Missouri, Arkansas, Iowa, Kansas, Nebraska and South Carolina.
A court filing on behalf of the Biden administration said the Department of Education has “broad authority to manage the federal student financial aid programs.” It went on to say that the Higher Education Relief Opportunities for Students Act of 2003, or HEROES Act, allows the secretary of education to waive or modify terms of federal student loans in times of war or national emergency.
The HEROES Act is a post-9/11 law meant to help members of the military. The Justice Department said the law lets the president reduce or erase student loan debt during a national emergency. Republicans argue the administration is misinterpreting the law because, in part, the pandemic no longer qualifies as a national emergency.
If the decision is appealed, the case would go to the 8th Circuit Court of Appeals.
The Biden administration launched a beta version of the student loan application last week for students to apply for forgiveness. The official launch came earlier this week.
Federal student loan payments resume in January after a nearly three-year pause from the pandemic.
