Courts block parts of Biden student loan repayment plan
![Courts block parts of Biden student loan repayment plan](https://thehill.com/wp-content/uploads/sites/2/2024/04/student-loans-swing-states_lonas_041324_AP.jpg?w=900)
Two federal judges in Missouri and Kansas halted sections of a Biden administration initiative intended to lower student loan payments, raising questions for the millions of Americans impacted by the program.
In Kansas, Judge Michael Crabtree ruled that the Department of Education can’t enact the full scope of the Saving on a Valuable Education (SAVE) program. Program participants with undergraduate student loan debt were scheduled to see their payments half next month, from 10 percent to 5 percent of their income 225 percent above the poverty line.
Crabtree, an Obama appointee, said the department did not get explicit authority for that portion of the program from Congress.
That challenge was led by Kansas Attorney General Kris Kobach (R) and joined by 11 other Republican states. Crabtree ruled earlier this month that eight of the 12 states did not have standing in the case, leaving only Alaska, Texas and South Carolina.
In Missouri, Judge John Ross—also an Obama appointee—ruled that the Department of Education cannot forgive any loans under SAVE, finding that forgiving federal loans illegally deprives state loan operators of revenue.
Five other states joined Missouri Attorney General Andrew Bailey’s (R) challenge. The argument is the same that the Supreme Court sided with in ruling against President Biden’s initial attempt at mass student loan forgiveness.
“Congress never gave Biden the authority to saddle working Americans with half-a-trillion dollars in other people’s debt. A huge win for the Constitution,” Bailey wrote in a social media post on X.
Ross also remarked that SAVE may be too broad to fit under its Congressional mandate, leaving the door open to future challenges over the entire program’s legality.
SAVE has canceled over $5.5 billion in debt for over 400,000 borrowers since its inception, as Biden attempted to maneuver around the Supreme Court block of his more sizable forgiveness plan. More than 8 million people have enrolled.
The program is Biden’s marquis student loan forgiveness policy, though is separate from efforts to cancel debt of public sector workers and for those defrauded by for-profit schools.
SAVE will continue to operate as the two lawsuits continue to be litigated, though Monday’s ruling effectively freezes the program’s extent and pauses all future loan forgiveness.
The Hill has reached out to the Department of Education for comment.
Date: | |
Tag: | Joe Biden |
Filter
-
MarketWatch - Business
Student-loan payment pause to take effect for millions amid court challenges to Biden plan
Millions of student-loan borrowers are getting a reprieve from their monthly payments while litigation challenging the Biden administration’s repayment plan makes its way through the court system.Joe Biden -
The New York Times - Business
Student Loan Payments Paused for 3 Million Enrolled in SAVE Plan
The Education Department said it would put the borrowers in forbearance while it recalculated their payments to comply with recent court rulings. -
CNBC - Business
Student loan payments go on pause for millions of borrowers
The Biden administration will place about three million student loan borrowers enrolled in its new SAVE repayment plan in forbearance while it defends the program in court. -
CBS News - Top stories
4 big student loan mistakes experts say to avoid
If you're taking out student loans for the new semester, borrow smart by avoiding these major slip-ups. -
ABC News - Top stories
3 million student loan borrowers to be placed in payment pause
The pause would be very similar to the pandemic-era student loan moratorium – borrowers would not need to make payments and interest would not accrue. -
The Hill - Politics
Biden administration blocks controversial mining road in Alaska
The Biden administration is blocking a controversial proposed road that would have enabled mining in Alaska, the administration is announcing Friday. In addition, it is separately indicating that it will decline to open up 28 million acres of ...Joe Biden -
NBC News - Top stories
Judge plans trial start for man accused of murdering four University of Idaho students
A judge has set a trial date for Bryan Kohberger after months of prosecutors and his defense sparring over legal motions. -
CBS News - Politics
Supreme Court blocks EPA rule aimed at combating air pollution
The Supreme Court ruled 5-4 to grant the request from Ohio, two other states and energy companies. -
NBC News - Politics
Supreme Court blocks EPA's interstate air pollution regulation
The Supreme Court on Thursday blocked a Biden administration environmental regulation aimed at curbing harmful air pollution that crosses from one state to another and contributes to the formation of smog. -
CBS News - Politics
Supreme Court rejects Purdue Pharma bankruptcy plan
The Supreme Court on Thursday derailed a multi-billion-dollar bankruptcy plan for Purdue Pharma, the maker of OxyContin, siding with the Biden administration.
More from The Hill
-
The Hill - Politics
Vets deserve better than confusion on defense funding and VA staffing
Now is the wrong time to cut thousands more full-time jobs at the VA. -
The Hill - Politics
Alec Baldwin loses latest appeal to dismiss ‘Rust’ case
A New Mexico judge denied actor Alec Baldwin’s latest attempt to dismiss the involuntary manslaughter charge over the fatal 2021 shooting on the set of "Rust," keeping the case on track to go to trial early next month. Judge Mary Marlowe Sommer ... -
The Hill - Politics
FCC proposes rule requiring carriers to unlock all cellphones
The FCC wants carriers to unlock cellphones within 60 days of purchase so users can shop different networks. -
The Hill - Politics
Trump decries Biden’s poor debate performance overshadowed his ‘fantastic’ showing
Former President Trump took a victory lap Saturday after this week's debate, but argued President Biden's poor showing overshaded his own "fantastic" performance. “As I walked off the stage on Thursday night, at the end of the highly anticipated ...Donald Trump -
The Hill - Politics
Why Trump wants Biden to stay in the race
If you are Team Trump, the last thing you want to see is “a knight in shining armor” riding into the convention in Chicago to “save” the Democratic Party.Joe Biden