Federal Judge and Two Courts Halt Part of Biden's Student Loan Repayment Plan

Jun 24, 2024, 11:17 PM

A federal judge in Missouri has halted part of President Joe Biden's SAVE student loan repayment plan. The court's decision blocks the U.S. Department of Education from canceling debt for borrowers under the new rules, although millions of borrowers still qualify for lower payments and a break on unpaid interest. The ruling is a significant setback for Biden's administration, which aimed to provide student debt relief to millions of Americans. The decision follows challenges from 11 states, arguing that the plan was unconstitutional and lacked congressional approval, involving half-a-trillion dollars. Additionally, two federal courts have blocked parts of the plan.