Federal Judges in Kansas and Missouri Block Parts of Biden's SAVE Student Loan Repayment Plan

Jun 25, 2024, 09:25 AM

Two federal judges in Kansas and Missouri have temporarily blocked significant parts of President Joe Biden's new student loan repayment plan. The rulings, which sided with several Republican-led states, prevent the Biden administration from moving forward with key aspects of the initiative designed to lower payments and speed up loan forgiveness for millions of borrowers. Missouri Attorney General Andrew Bailey celebrated the decision, stating that Congress never gave Biden the authority to implement such a plan. The blocked measures are part of Biden's broader effort to provide financial relief to student loan borrowers, a plan estimated to cost $160 billion. The Supreme Court had previously ruled against a similar initiative, and the current rulings have put the future of the SAVE plan, set to take effect on July 1, in doubt. The plan, which could transfer half-a-trillion dollars in debt, is now facing potential appeals.