Federal Judge Halts Biden's $156 Billion SAVE Student Loan Repayment Plan Effective July 1

Jun 25, 2024, 10:02 AM

A federal judge in Missouri has halted President Biden's SAVE student loan repayment plan, which aimed to reduce loan bills for millions of Americans. The ruling, effective July 1, blocks the cancellation of student loans under the income-driven repayment plan after several states, including Kansas, sued over the program. The SAVE plan would have canceled at least $156 billion in student-loan debt, transferring it to taxpayers, costing them $559 billion. Despite the ruling, millions of borrowers still qualify for lower payments and a break on unpaid interest. The Department of Education, supported by the Justice Department, plans to appeal the district court rulings in Kansas and Missouri, which were made by Obama-appointed judges.