Biden’s student loan forgiveness plan put on hold

Two judges have halted Biden’s SAVE student loan plan.

Two federal judges have halted large portions of President Joe Biden’s SAVE student loan repayment plan.

This ruling occurred just before millions of borrowers were supposed to see reduced payments through the plan.


The big picture: Attorney Generals in Kansas and Missouri argued that the SAVE plan was an attempt to circumvent a Supreme Court ruling that blocked student debt forgiveness the previous year.

  • The rulings prevent the U.S. Department of Education from implementing major provisions of the SAVE plan, including forgiving any more debt under the new income-driven repayment plan and further reducing borrowers’ payments as planned.
  •  More than 8 million borrowers have enrolled in the SAVE plan since its launch in August, and they were on the verge of seeing their monthly bills drop by half or more before the rulings were issued.
  • The disruptions to the SAVE plan do not impact the Biden administration’s second attempt to deliver broad student loan forgiveness, which is still ongoing despite the legal challenges.

What they’re saying: Education Secretary Miguel Cardona said the Biden administration will continue to push for student loan debt relief. 

  • “Republican elected officials and special interests sued to block their own constituents from being able to benefit from this plan,” Cardona said. 
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