Biden Student Loan Forgiveness Blocked Again by Missouri Judge

The Biden administration's sweeping student loan forgiveness plan was again temporarily blocked by a Missouri judge on Thursday, just a day after a federal judge in Georgia said he would let an injunction against the relief expire.

St. Louis-based U.S. District Judge Matthew Schelp, an appointee of former Republican President Donald Trump, issued the latest preliminary injunction against Biden's relief plan.

The order once again prohibits the U.S. Department of Education from forgiving student loans until Schelp has a chance to rule on the case.

The latest order limited the 24-hour period in which federal student loan holders faced legal whiplash as a lawsuit challenging Biden's relief package, filed by seven Republican-led states, made its way from Georgia to Missouri courts.

The plaintiff states — Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota and Ohio — claim the U.S. Department of Education's new debt relief effort is illegal.

On Wednesday, U.S. District Judge Randal Hall in Georgia ruled that his state did not have standing to sue over the relief plan and that his court therefore could not serve as venue for the case.

Hall ordered the case moved to Missouri because the states claim Biden's plan would most harm student loan servicer Mohela or the Missouri Higher Education Loan Authority.

When CNBC announced Thursday that the injunction would expire, consumer advocates and borrowers hoped the Biden administration would try to quickly move forward with its loan forgiveness plan for tens of millions of Americans. The Department of Education has already prepared its loan servicers to begin reducing and paying off people's debts.

However, Schelp cited this very possibility as the reason for the administration's delay while it reviewed the case.

“Allowing defendants to discharge 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 back end, thereby allowing defendants' actions to escape scrutiny.” , Schelp wrote.

This is a developing story. Please check back for updates.