Courts halt parts of Biden’s student loan repayment plan
CNN
Two federal court judges in Kansas and Missouri have paused parts of a student loan repayment plan that the Biden administration launched last year, which lowers borrowers’ monthly payments and provides a faster route to debt forgiveness.
Two federal court judges in Kansas and Missouri have paused parts of a student loan repayment plan that the Biden administration launched last year, which lowers borrowers’ monthly payments and provides a faster route to debt forgiveness. Two lawsuits filed by Republican-led states argue that the Biden administration overstepped its authority when it implemented the SAVE (Saving on a Valuable Education) repayment plan. Both judges granted partial preliminary injunctions Monday. Two parts of the SAVE plan will be on pause until the cases are fully litigated. The Biden administration cannot cancel any more federal student debt for borrowers enrolled in the SAVE plan. Under the plan, borrowers qualify for debt forgiveness once they make at least 10 years of payments. To date, $5.5 billion has been canceled for 414,000 people enrolled in SAVE. The Biden administration will also be blocked from implementing further provisions of the SAVE plan. In July, millions of people were expecting to see their payments lowered – but it’s now unclear whether those reductions will occur.
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