this post was submitted on 03 Oct 2024
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A federal judge in Missouri put a temporary hold on President Joe Biden’s latest student loan cancellation plan on Thursday, slamming the door on hope it would move forward after another judge allowed a pause to expire.

Just as it briefly appeared the Biden administration would have a window to push its plan forward, U.S. District Judge Matthew Schelp in Missouri granted an injunction blocking any widespread cancellation.

Six Republican-led states requested the injunction hours earlier, after a federal judge in Georgia decided not to extend a separate order blocking the plan.

The states, led by Missouri’s attorney general, asked Schelp to act fast, saying the Education Department could “unlawfully mass cancel up to hundreds of billions of dollars in student loans as soon as Monday.” Schelp called it an easy decision.

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[–] [email protected] 5 points 6 hours ago

One challenge, however, is that the forgiveness is going to be taxable next year and my wife who is a teacher, will have a significant amount forgiven that is two payments away that can't be bought back before that point. Others like us will still be impacted this way, which sucks.

She requested to be in the buy back program but they take ages to reply so we're at the mercy of this and time.