A federal appeals court issued a temporary halt on Thursday on President Joe Biden's income-driven repayment program for student loans due to challenges to its legality.
The Saving on a Valuable Education plan, which was introduced in 2023, seeks to provide new repayment methods for student loan borrowers, including lowering monthly payments based on income and minimizing interest payments.
The 8th Circuit Court of Appeals halted the plan in its entirety in order to give the court time to issue a final ruling after also issuing a partial injunction in June.
"Appellants' emergency motion for an administrative stay prohibiting the appellees from implementing or acting pursuant to the Final Rule until this Court rules on the appellants' motion for an injunction pending appeal is granted," the court filing reads.
"Today's ruling from the 8th Circuit blocking President Biden's SAVE plan could have devastating consequences for millions of student loan borrowers crushed by unaffordable monthly payments if it remains in effect. It's shameful that politically motivated lawsuits waged by Republican elected officials are once again standing in the way of lower payments for millions of borrowers," U.S. Secretary of Education Miguel Cardona said in a press release following the decision.
In 2023, the Supreme Court ruled that a separate plan from the Biden administration that would forgive tens of thousands of dollars for each borrower was unconstitutional, stating that the Secretary of Education overreached his powers when using emergency authority to do so.
The Biden administration's attempts following the court loss have faced a multitude of challenges, including lawsuits citing the court's ruling and a House bill aimed at repealing Biden's plan due to its unconstitutionality.
No comments:
Post a Comment