On Monday, a federal judge dismissed a challenge to President Joe Biden's revised student loan debt cancellation plan, citing the plaintiffs' lack of standing.
The suit was filed by the New Civil Liberties Alliance on behalf of the Cato Institute and the Mackinac Center. While the district court did not rule on the merits of the case, it determined that Cato and Mackinac were not the appropriate parties to bring the suit.
NCLA lawyer Sheng Li expressed disagreement with the court's conclusion on legal standing and stated that they are currently reviewing legal options with their clients.
In a separate announcement, the White House declared its intention to start canceling at least a portion of the debt for approximately 804,000 borrowers who have been in repayment for more than 20 years.
This new development comes after the Supreme Court struck down Biden's original plan to forgive up to $10,000 in debt for the majority of borrowers and up to $20,000 for Pell Grant recipients. Following that setback, the administration unveiled an income-driven repayment plan.
It is estimated that this latest initiative has the potential to incur a cost of up to $559 billion. The judge's decision is delivered in anticipation of the resumption of student loan repayments, which is scheduled for September after a prolonged pause.