A federal appeals court on Thursday issued an order suspending President Joe Biden’s income-contingent repayment program for student loans, citing challenges to the program’s legality.
Save for a Valuable Education (SAVE) planThe bill, introduced in 2023, aims to provide new repayment options for student loan borrowers, including lower monthly payments based on income and minimal interest payments. Stopped It also issued a partial injunction in June before halting the entire plan to allow the court time to issue a final ruling.
The order was petitioned following a lawsuit filed in April by the states of Missouri, Arkansas, Florida, Georgia, North Dakota, Ohio and Oklahoma, which is still ongoing. assignment They argue that President Biden has the authority to implement bold loan forgiveness measures, that he has overstepped his duties and that the plan is illegal.
“Appellants’ emergency motion for an administrative stay enjoining the Respondents from implementing or acting in accordance with the Final Rule until the Court rules on Appellants’ motion for an injunction pending appeal is granted,” court papers state.
A Department of Education spokesman said the federal agency is reviewing the ruling and its impact on borrowers. according to In The Washington Post.
“Today’s decision from the Eighth Circuit Court of Appeals blocking President Biden’s SAVE Plan, if it remains in effect, could have devastating consequences for millions of student loan borrowers struggling with monthly payments they cannot afford. It is shameful that a politically motivated lawsuit brought by Republican elected officials is standing in the way of payment relief for millions of borrowers,” U.S. Secretary of Education Miguel Cardona said at a press conference. release As per decision.
“Already we’ve approved an unprecedented $169 billion in relief for nearly 4.8 million Americans, including teachers, veterans, other public servants, students cheated out of college, and people with disabilities,” Cardona continued. “And from increasing Pell Grants to making community college free, President Biden, Vice President Harris and I believe reducing the burden of college tuition is a cause worth fighting for, and we’re not giving up.”
BREAKING: The Court has granted our emergency motion to block Joe Biden’s entire illegal student loan scheme, which would saddle working Americans with $500 billion in Ivy League debt.
This is a huge win for all Americans who still believe they should pay out of pocket.
— Attorney General Andrew Bailey (@AGAndrewBailey) July 18, 2024
According to The Washington Post, the SAVE plan is expected to cost taxpayers $156 billion over 10 years and has already helped 414,000 people reduce their balances. More than 8 million federal loan borrowers are enrolled in the repayment plan. (Related: ‘Potentially devastating’: Parents sue Gavin Newsom over new law that would allow schools to secretly allow kids to transition)
In 2023, the Supreme Court ruled that a separate Biden administration plan to forgive tens of thousands of dollars per borrower was unconstitutional, saying the Secretary of Education exceeded his authority to do so using emergency powers. The Biden administration’s efforts after the court loss face numerous challenges, including lawsuits citing the court’s rulings and a House bill that seeks to strike down Biden’s plan on the grounds of unconstitutionality.
The Department of Education did not immediately respond to a request for comment.
As an independent, nonpartisan news service, all content produced by the Daily Caller News Foundation is available free of charge to any legitimate news publisher with a large readership. All republished articles must include our logo, reporter byline, and affiliation with the DCNF. If you have any questions about our guidelines or partnering with us, please contact us at licensing@dailycallernewsfoundation.org.
