Federal appeals court could rule soon on Biden’s student loan repayment plan. Here’s what borrowers need to know
CNN
The 8th US Circuit Court of Appeals could rule soon on a Republican-led lawsuit challenging President Joe Biden’s student loan repayment plan after hearing oral arguments Thursday.
The 8th US Circuit Court of Appeals could rule soon on a Republican-led lawsuit challenging President Joe Biden’s student loan repayment plan after hearing oral arguments Thursday. The plan, known as SAVE (Saving on a Valuable Education), lowers monthly payments and shortens the time it takes to receive student loan forgiveness. The plan launched last year but has been on hold since July due to the litigation. Biden launched SAVE after the Supreme Court struck down his signature, one-time student loan forgiveness program. If allowed to move forward, the repayment plan could be the most significant change the president was able to make to the federal student loan system during his term. Eight million people are currently enrolled in the plan. The lawsuit was filed in April by attorneys general in Missouri, Arkansas, Florida, Georgia, North Dakota, Ohio and Oklahoma. The states argue that the Biden administration does not have the statutory authority to implement the SAVE plan. But the government’s lawyers say its authority comes from the Higher Education Act that was passed by Congress years ago. Missouri’s solicitor general, Joshua Divine, said in court Thursday that the government’s argument “makes a mockery of the entire statute.”
The special counsel stressed his decision was not about the strength of his case against Trump
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