Judge dismisses challenge to revised Biden student loan cancellation plan

A federal judge on Monday dismissed a challenge to President Joe Biden's revised student loan debt cancellation plan, asserting that the plaintiffs lacked standing.

The New Civil Liberties Alliance filed the suit on behalf of the Cato Institute and the Mackinac Center. 

"The district court did not rule on the merits of the case and instead said Cato and Mackinac were not the right parties to bring it," NCLA lawyer Sheng Li told Axios. "We disagree with the court's conclusion regarding legal standing and are reviewing legal options with our clients."

The White House announced Monday that it would begin cancelling at least some debt for roughly 804,000 borrowers who have been in repayment for more than 20 years.

The Supreme Court, earlier this year, struck down Biden's original plan to forgive up to $10,000 in debt for most borrowers and as must as $20,000 for Pell Grant recipients. After that defeat, the administration announced an income-drive repayment plan.

Some estimates suggest that the new initiative could cost as much as $559 billion. 

The judge's decision comes ahead of a September date for the long-paused student loan repayments to resume.

Ben Whedon is an editor and reporter for Just the News. Follow him on Twitter.