A federal appellate court has put a halt to the remaining elements of President Joe Biden's student loan forgiveness initiative, the Saving on a Valuable Education (SAVE) program.
This program was designed to alleviate the financial burden on borrowers by reducing their payments. The decision was handed down by the 8th Circuit Court of Appeals on Thursday, coinciding with the Biden administration's unveiling of a fresh student debt forgiveness plan.
According to The Post Millennial, the court approved a request from seven Republican-led states to halt aspects of the program that had not been previously obstructed by the judiciary. In the previous month, a St. Louis court had prevented the agency from implementing further student loan forgiveness under the SAVE program. Nonetheless, some components of the initiative remained active.
The request to halt the remaining active portions of the program was made by state attorneys led by Attorney General Andrew Bailey of Missouri. Bailey stated, "The Court granted our emergency motion to BLOCK Joe Biden's entire illegal student loan plan, which would have saddled working Americans with half-a-trillion dollars in Ivy League debt." He further celebrated the decision as a "HUGE win for every American who still believes in paying their own way." The program, if implemented, would have utilized taxpayer money to decrease the monthly payments for individuals with student loans.
This ruling comes as the Biden administration announced another round of student debt forgiveness, amounting to approximately $1.2 billion for those eligible under the Public Service Loan Forgiveness program (PSLF). This program is designed to forgive the debt of individuals in public service roles such as teachers, nurses, firefighters, and other government-funded positions.
Education Secretary Miguel Cardona expressed his concern over the ruling, stating, Todays ruling from the 8th Circuit blocking President Bidens SAVE plan could have devastating consequences for millions of student loan borrowers crushed by unaffordable monthly payments if it remains in effect. He criticized the Republican-led lawsuits as politically motivated, accusing them of obstructing lower payments for millions of borrowers.
In the wake of this ruling, borrowers enrolled in the SAVE program will be placed in an interest-free forbearance while the case continues to be examined within the legal system. The Biden administration's Education Department has pledged to continue to vigorously defend the SAVE Plan, which they claim has already assisted over 8 million borrowers in accessing lower monthly payments. This includes 4.5 million borrowers who have been making zero dollar payments each month.
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