#StudentLoanForgiveness #BidenAdministration #EducationPolicy
Judges Halt Key Parts of Biden's Student Loan Forgiveness Plan, Risking Relief for Millions
Two federal judges have blocked significant parts of President Joe Biden's new student loan repayment plan, putting debt relief for millions of borrowers in jeopardy. The preliminary injunctions prevent the U.S. Department of Education from implementing provisions of the SAVE plan, including payments set to begin in July. Additionally, the Biden administration cannot forgive any debt under the income-driven repayment plan until the cases are decided.
The judges' evening rulings stop the U.S. Department of Education from implementing provisions of the SAVE plan, which aimed to provide significant debt relief to millions of borrowers. Over 8 million borrowers have enrolled in the plan since its launch in August. These borrowers were on the verge of seeing their monthly bills drop by half or more. Education expert Markrowitz expressed the disappointment and anger borrowers will feel, stating, "Borrowers will be disappointed and angry that relief was yanked from them at the last minute."
The preliminary injunctions are the result of lawsuits filed by Republican-led states earlier this year. These states argued that the Biden administration was overstepping its authority and attempting to roundaboutly forgive student debt, a move the Supreme Court rejected in a sweeping plan last year. Under the SAVE plan, many borrowers would have paid only 5% of their discretionary income towards their debt each month, and anyone earning less than $32,000 would have had a $0 monthly payment.
U.S. Secretary of Education Miguel Cardona vowed to continue fighting for the relief, stating, "Republican and special interests are trying to block their constituents from benefiting from this plan, even though the Department has relied on its authority under the Education Act to implement income-driven repayment plans over the last three years." He added, "The Department of Justice will continue to vigorously defend the SAVE Plan."
Original Article: https://www.cnbc.com/2024/06/25/judges-halt-key-parts-of-bidens-student-loan-forgiveness-plan-save.html
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