Federal Court Halts Student Loan Payment Program in Another Blow to Biden Admin

College Students

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 (SAVE) 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.

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Obama-Appointed Judges Strike Down Parts of Biden’s Student Loan Repayment Plan

President Biden with Education Secretary Miguel Cardona

Obama-appointed federal judges blocked parts of the Biden administration’s Saving on a Valuable Education (SAVE) plan on Monday in response to Republican states’ lawsuits.

Judge John A. Ross of Missouri and Judge Daniel Crabtree of Kansas blocked parts of the administration’s SAVE plan, which was an income-driven repayment program intended to lower monthly costs for borrowers. The court rulings prohibit the Department of Education from further lowering payments or eliminating more debt through the program, Politico reported.

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