Joe Biden
President Joe Biden motions while boarding Air Force One at Los Angeles International Airport after attending the Summit of the Americas in Los Angeles, Calif., on June 11, 2022.AP Photo/Evan Vucci
  • The lawsuit was struck down by the judge.

  • It was seen as a serious challenge to the loan forgiveness plan.

  • For now, Biden's debt relief can move forward despite the GOP's appeal.

A federal judge threw out the Republicans' case after they tried to block the student loan forgiveness.

Six Republican-led states that filed a lawsuit against Biden's student-debt relief argued that the loan forgiveness would hurt their states' tax revenues, as well as the business operations of the Missouri-based student-loan company.

The debt relief plan was challenged in the suit. Their case was struck down by the judge because of lack of jurisdiction.

Autrey said that the case wouldn't be considered anymore because the plaintiffs didn't show how the debt relief would hurt them. The lawsuit could be taken to the 8th Circuit Court of Appeals, which is likely to be conservative.

Judges have struck down three major lawsuits that sought to block debt relief. The Public Service Loan Forgiveness (PSLF) program has been the subject of at least six lawsuits filed by conservative groups.

The legal challenges have not deterred the administration. A request by a conservative group to impose a pause on the implementation of debt relief was dismissed by the Supreme Court before Autrey's ruling.

On Monday, Biden officially launched the application for up to $20,000 in student-loan forgiveness, which requires borrowers to fill out basic information like their names, emails, and Social Security numbers.

The dismissal of the Republican states' lawsuit should be good news for borrowers and lawmakers. On Tuesday, Cori Bush wrote a letter to the CEO of the company asking for more information on how the legal challenge would affect the borrowers it serves.

One of the largest student loan companies in the world would be involved in political efforts to rob millions of their right to student loan debt relief.

For now, borrowers can apply for relief through the online application at studentaid.gov, even though another lawsuit will go to court next week.

The executive director of the Student Borrower Protection Center said that a federal judge confirmed what lawyers in and out of government have known. The law is on the borrowers' side as right-wing politicians and corrupt corporations fight against this historic effort to deliver life-changing debt relief to tens of millions of families.

Business Insider has an article on it.