Federal appeals court blocks remainder of Biden’s student debt relief plan

WASHINGTON (AP) — A federal appeals court blocked the implementation of the Biden administration’s student debt relief plan, which would have lowered monthly payments for millions of borrowers.

In a ruling Thursday, the 8th Circuit Court of Appeals granted a motion for an administrative stay filed by a group of Republican-led states seeking to invalidate the administration’s entire student loan forgiveness program. The court’s order prohibits the administration from implementing the parts of the SAVE plan that were not already blocked by lower court rulings.

Two separate legal challenges to Biden’s SAVE plan have worked their way through the courts. In June, federal judges in Kansas and Missouri issued separate rulings that blocked much of the administration’s plan to provide a faster path towards loan cancellation and reduce monthly income-based repayment from 10% to 5% of a borrower’s discretionary income.

The 10th Circuit Court of Appeals issued a ruling that allowed the department to proceed with the lowered monthly payments. Thursday’s order from the 8th circuit blocks all aspects of the SAVE plan.

<bsp-list-loadmore data-module="" class=«PageListStandardB» data-gtm-region=«RELATED COVERAGE» data-gtm-topic=«No Value» data-show-loadmore=«true» data-parsely-url=«https%3A%2F%2Fapi.parsely.com%2Fv2%2Frelated%3Fapikey%3Dapnews.com%26url%3Dhttps%3A%2F%2Fapnews.com%2Farticle%2Fstudent-loans-biden-debt-relief-appeals-court-abd06890b12073bd39a08deef83a9158%26limit%3D9%26respect_empty_results%3D1%26sort%3D_score%26pub_date_start%3D2024-06-03%26exclude%3Dsection%3APress%20Releases%26exclude%3Dtags%3ACelebrity%20Birthdays» data-parsely-title=«Related Stories» data-gtm-modulestyle=«List B»> <bsp-custom-headline