Federal Judge Dismisses Georgia from Student Loan Forgiveness Lawsuit

A federal judge on Wednesday gave the student loan forgiveness plan a green light, dismissing Georgia from a Republican-led lawsuit that aimed to block the debt relief program. The judge ruled that the state of Georgia had no place in the case for failing to prove how its economy will be impacted from the forgiveness plan.

The lawsuit, brought by seven GOP-controlled states, sought to halt the initiative to forgive $73 billion in student loan debt. The states argued the plan would hurt their economies, but Judge Hall found that Georgia failed to demonstrate how the program would cause any direct financial harm. The decision removed the state from the suit entirely.

The ruling comes just in time, as a temporary restraining order on the debt relief program—imposed by Hall on September 5—was about to expire. Hall declined to extend the order.

This decision has been both praised and criticized. Supporters argue it will ease financial burdens for many borrowers, while opponents claim it will exacerbate inflation and unfairly redistribute financial responsibility and some consider it to be unfair for many people who don’t qualify for the program or have worked tirelessly to pay off their student loans out of pocket.

Republican opposition to the plan has been strong, with critics accusing the administration of overstepping its authority. The lawsuit spearheaded by GOP-led states hoped to block the program entirely, but Hall’s ruling suggests that at least for Georgia, the argument lacks legal merit.

While the legal battle continues, the plans to cancel student debt seem to be moving forward for now, a move that will impact tens of millions of borrowers across the country. And it remains to be seen whether or not the GOP-backed lawsuits will prevail in the court of law in the long run.