Federal Appeals Court Blocks Biden's $475 Billion SAVE Student Debt Relief Plan

Jul 18, 2024, 10:25 PM

A federal appeals court has blocked President Joe Biden's new student debt relief plan, known as the Saving on a Valuable Education (SAVE) plan. The 8th U.S. Circuit Court of Appeals issued the ruling on Thursday, granting a request from seven Republican-led states to halt the implementation of the plan. The SAVE plan was designed to lower monthly payments for millions of borrowers and offer debt forgiveness, with an estimated cost of $475 billion. This decision affects approximately 8 million borrowers, leaving them in uncertainty and potential chaos. The Education Department has paused student loan payments amid the ongoing legal battle. The ruling is seen as a significant setback for the Biden administration's efforts to provide student debt relief.