The week began with the expiration of the grace period for late or missed student loan payments. A few days later came some unexpected news about student loans: The preliminary injunction that put President Joe Biden’s new student loan forgiveness rule on hold was overturned by a federal judge on Thursday, clearing the way for its implementation. An estimate from the Center for American Progress concluded that the plan, “combined with the administration’s previous efforts, will benefit up to three out of four federal student loan holders,” CNBC reported.

Accordingly the Washington PostA lawsuit filed by seven Republican-led states (Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota and Ohio) argued that the government’s proposal, which the Biden administration says will benefit over 30 million borrowers could, “oversteps its authority and illegally prepares to forgive loans before the rule has even taken effect.”

U.S. District Judge J. Randal Hall ruled that the lawsuit had been improperly filed in Georgia and instead remanded it to Missouri; The Supreme Court’s previous ruling on the Biden administration’s efforts to cancel student loans involved MOHELA, the Missouri Higher Education Loan Authority (MOHELA).

In a statement, an Education Department spokesman endorsed the judge’s decision that the case had “no legal basis to be tried in Georgia” and condemned the case as an attempt by Republicans to “prevent millions of their own voters from venting.” “to get to breathe.” on their student loans.”

“The decision to file this case in the Brunswick Division of the Southern District of Georgia – a carefully selected court with a single Republican-appointed judge – was a clear and desperate move to undermine democracy and increase opportunities for working families Persis Yu, deputy executive director and managing attorney of the Student Borrower Protection Center, told Business Insider about the case.

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