Joe Biden’s efforts to fulfill a key campaign promise of student loan debt relief were dealt a new blow this week when a federal appeals court blocked the Savings for a Valuable Education program, known as SAVE.
1 page, unsigned order In a decision issued Thursday, the 8th U.S. Circuit Court of Appeals granted a request from six Republican-led states, including Missouri, for the court to suspend implementation of parts of the SAVE program. Consider A more permanent block supported by Republicans. District Judge The government had already blocked implementation of other parts of the SAVE program in a ruling last month.
Meanwhile, supporters of SAVE touted the idea that an order blocking SAVE’s implementation would be life-changing, even though the program only began providing debt relief a few months ago.
Missouri Republican Attorney General Andrew Bailey, who filed the emergency motion on behalf of the plaintiffs, hailed the order as a “huge victory” for ordinary Americans. Bailey called SAVE “illegal” and argued it was a backdoor way to saddle taxpayers, many of whom never attended college, with “$500 billion in Ivy League debt.”
“I am proud to lead on the front lines of this issue. In Missouri, we believe in paying down our debt and not putting a burden on hardworking taxpayers. Today’s victory is a victory for all hardworking Americans who don’t have to rely on their neighbors to pay their bills,” Bailey added in a separate statement. statement.
Meanwhile, supporters of SAVE touted the order blocking its implementation, saying it would upend people’s lives just days before the program began providing debt relief. A few months ago.
“Today’s decision by the U.S. Court of Appeals for the Eighth Circuit 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.” statement From Secretary of Education Miguel Cardona.
“This decision threatens the entire federal student loan system and will cause utter confusion and chaos,” Eileen Conner, president and executive director of the Project to Combat Predatory Student Loans, added in a statement.
of Biden Administration Biden has tried to reduce or outright cancel student loan debt for years, after campaigning actively on the issue in 2020. But courts have repeatedly rejected many of those efforts. In June 2023, the Supreme Court rejected Biden’s attempt to forgive up to $20,000 in loans for eligible borrowers.
SAVE was another vehicle to achieve the same goal. To date, more than 8 million people have enrolled in SAVE, and more than 400,000 of them have had their initial debts of less than $12,000 forgiven. The Court of Appeals’ order does not affect any debt forgiveness already provided through the SAVE program.
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